Making An Offer to Purchase a Home: The Basics ExplainedBy Teresa Cowart in Blog,For Home Buyers. Tagged: First Time Home Buyers • Home Buyers • Purchase Offer • Teresa Cowart
You have made the decision to enter the real estate market as a buyer. You have an idea of what you want and don’t want in a home. So how do you go about finding a home and making an offer? Here, I give you the basic steps in making an offer to purchase a home.
Choose A Realtor
First things first, find yourself a reputable and experienced agent.
There are many different things to do and not to do when choosing the right realtor. You need someone who is experienced and knowledgeable of the area you want to move to. You want someone with good references and has a good track record in the industry. Most importantly you want a real estate agent who will look out for your best interests.
A pre-approval letter is essential. It is a document that your mortgage lender provides that states you are able to financially afford a home. This step is an important step for two reasons. One, it gives you a much better idea as to what you can afford as you look at homes. The next reason is that it looks much more attractive to home sellers when they see that a lender has pre-approved you for a mortgage.
Begin The Search!
Sit down with your Realtor and discuss all of the things you would like in a home. It helps to prioritize the list as to which things are more important in a home than others. Things like location, size, style, features, neighborhoods, entertainment, schools, parking etc… are all things to think about. Your Realtor will take this information and use their tools and networks to search for homes meeting your criteria. Once your Realtor finds some houses, you will be able make appointments for home showings.
Tip: Be patient, it can take a number of house showings to find the perfect fit for you!
Put It In Writing
When you have found a home you are interested in and are ready to make an offer, your Realtor or real estate attorney will provide you with the paperwork needed to create a purchase agreement. The purchase agreement will include the price you are offering to pay for the home, your financing plans, buyer contingencies, and the amount of time the offer is good for. In addition to submitting a purchase agreement, you also submit a check for the earnest money and your pre-approval letter.
Negotiate, Accept or Reject
After the seller receives the offer they have the option to counter, accept or reject the offer. They may counteroffer regarding the price or any of the contingencies. They will send this back to you and it will go back and forth with various changes between the two parties until both accept it. Once the contract is signed it is a legal binding agreement.
A Change Of Heart
There are times when a buyer may decide to back out of an offer. If the purchase agreement has yet to be signed, a buyer can simply have their Realtor call the sellers and withdraw the offer. If however, the offer has been signed by both parties, the buyer’s attorney will need to be enlisted in canceling the contract as it is a legally binding agreement. Read more about backing out of the purchase offer.
Other Home Buyer Resources
- How to Make an Offer on a Home – Realtor.com
- How to Determine Which Mortgage Option is Best for Me – Kyle Hiscock
- How to Make Moving Simple in 10 Steps – Raleigh Realty
- How to Make an Offer on a Home – Greg Hancock
- 20 Things to do Before Buying a House – Bill Gassett
- Important Reasons Why Buyers Need to See Potential Homes in Person – Tina Israelson
- How to Prepare to Become a Homeowner – Teresa Cowart
More Articles for Home Buyers
More Articles for Home Sellers
Thanks for reading my blog! It is my goal as your full service real estate Realtor specializing in the Richmond Hill, Savannah, Pooler, and Hinesville – Georgia areas, to provide you with exceptional service at all times. My promise to you is to openly and honestly answer all your questions, help you navigate through the process and to make myself available to you day and night. I work for you and you are my priority. My local expertise and extensive real estate training and experience will benefit you whether you are serious about buying or selling a home at this time, or are a returning client checking out the many homeowner resources I offer. I am a “real” person and my reputation depends on every client, every deal, every day. I LOVE my job and it shows! You can also connect with me on my Facebook Page and/or Google Plus for area info and events, things to do, real estate news, home ownership tips, tips for both buyers and sellers, and so much more! I’m also on Pinterest!