Four Tips to Help You Make an Offer on a Home

Interest rates remain at historic lows at the moment. The demand is higher, supply is tight, and the real estate market is hot. However, deciding to purchase a home is still one of the biggest financial decisions we will make in our lifetime. Today, we will provide four tips to intelligently make an offer on a home.

1. Research

Before you submit an offer on that property, you should conduct as much research as possible about the property you are interested in. Finding information such as how long the property has been on the market, the current market dynamics in that neighborhood in terms of supply and demand for other properties and check the physical condition of the property. Overall, the more information you can obtain about the property and area, the better position you will be in to negotiate the sales contract.

2. Initial Offer

Once you are ready to submit an offer, you should prepare a proposed contract with all of your proposed terms and conditions thoroughly. It is not enough to just agree on a sales price, but consider when you want to close on the property as well as ensuring that you will be receiving clear title at the time the transaction is complete.

3. Negotiate

The initial offer is just a starting point. Be prepared to receive a counteroffer from the seller. The counteroffer may include non-financial terms and a new proposed sales price. Be prepared to go over both the proposed sales price and other proposed terms. Be prepared for these negotiations to go several rounds with the seller. 

4. Home Inspection

Before you purchase the home, be sure to schedule a thorough home inspection. An inspection should identify unsafe conditions or expensive repairs like structural integrity, plumbing, roof condition, electrical maintenance, termites, pests, and others. If there are additional concerns you are apprehensive about, talk with your inspector so they can check for additional items. The inspector will prepare a report once the inspection is complete and that report may serve as the basis to reopen negotiations with the seller.

Once you have completed this process, it will be time to complete your transaction and become a homeowner. 

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