Strategize with your Agent
Every part of making an offer will be guided by your agent, starting with strategizing your plan and eventually submitting your offer letter. Before making an offer on a house, you should be sure that you are serious about purchasing. Submitting an offer letter shows that you intend to purchase the house if circumstances allow, so you should work with your agent to ensure that the house is the right fit for you. Looking at comparable homes in the same area will give you an idea of how much the home is worth. Your agent has a deep understanding of the market in your area and will make sure that you are paying a fair price for whatever home you chose. Every part of making an offer will be guided by your agent, starting with strategizing your plan and eventually submitting your offer letter. First and foremost, the home should fit into your budget. Getting a mortgage pre-approval is the best way to find out what you can afford, which will help eliminate loan-related surprises down the road.
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Once you find a house that you love, you will need to submit a formal offer letter to the sellers. The letter should include the price, the amount of earnest money (or good-faith deposit), details about closing costs, and any contingencies.
When deciding on an offer price, you and your agent will come up with an amount that's appropriate in relation to your personal budget, the current market, and the value of the home. You will also need to take into consideration how competitive the listing is and the possibility of a bidding war. You should make a competitive offer, but avoid immediately offering your full preapproval amount to leave room for negotiations.
Contingencies are things that need to happen before a sale can move forward. Your written offer should include at least a few standard contingencies to protect both you and the seller. Some common contingencies include receiving a final loan approval within a certain amount of time, how any issues found in a home inspection will be dealt with, and receiving an appraisal for the house.
Accepting an Offer
After the offer is submitted, the offer may either be denied, accepted, or there may be room for negotiations between you and the seller. If your offer is accepted, both parties will need to sign a purchase offer agreement. You will then begin the process of submitting a mortgage application and preparing for closing day.