If you are in the market to buy a new house, you are undoubtedly starting to go over all of the local real estate listings and may be looking to retain a real estate agent to help you with your search. Buying a new home is exciting, but you also need to do your homework if you want to be able to get a good deal. Here are three tips to keep in mind when making an offer on your potential new home.
Look Up Other Recent Sales in the Area
Repeat this mantra until you get it: offer based on value, not on price. The first thing you should do when making an offer on a home is to look at other homes in the area that have sold recently to get an idea of the general value of the neighborhood. If lots of homes are all being sold for far less than what the seller is asking, you may be able to get away with a low offer on this house. Always make your offer on what you feel the home is really worth value-wise; don't inflate your offer just to get it closer to the list price.
Don't Forget to Calculate the Difference on a Monthly Basis
If you make an offer on a home and the seller comes back with a counter-offer that is only a few thousand dollars more, you might not want to think about it in those terms. If you will be making a monthly mortgage payment on the home, a difference of a few thousand dollars on the list price could actually only be $20 or less per month when stretched out over 30 years, if you get a good interest rate on your loan. It's OK to want a good deal, but don't lose your dream house over an amount that is probably less than what you pay for coffee every month.
Take Care of the Paperwork Before You Offer
In an ideal world, you will go to the bank and get pre-approved for a loan that will cover any potential house you make an offer on, before you actually make that offer. Real estate moves fast today and if you find a home you like, you don't want to hesitate on the offer, you want to be able to make it immediately. You won't be able to do that if you have to go to the bank before you can finalize the offer ,and by then the house might be gone.
When making an offer on a home, make sure you are pre-approved by the bank and ready to go, and don't forget to look up real estate listings for other homes in the area to get an idea of the house's real value. If the counter-offer is relatively close to your initial offer, calculate the difference per month and don't let a small monthly payment keep you from getting the house of your dreams. For more tips, reach out to a real estate agent today.Share
23 April 2018
I have always been someone who is passionate about making the world around me more beautiful, which is probably why I was drawn to real estate initially. I really wanted to create a place where me and my family could spend a lot of time together in a peaceful, relaxing place, so I started looking for places in my area that were fit for the job. Within a few months, I was able to find an incredible property that was within my price range, so I purchased it as soon as possible. This blog is all about choosing beautiful real estate.