When you make an offer on a home you are trying to purchase, your real estate agent is an invaluable part of the process. We present home buyers with a printed purchase, which you are able to adjust towards your needs. This form identifies the buyer, seller, property location, who the brokers are as well as the purchase price offered, down payment, the loan amount and the deposit. A time limit will then be set on a response from the sellers. During this process, many things are negotiable.
Here are some factors that come into play during this process:
The Price of the Home
When buying a home and subsequently making an offer, you need to know the price points of the homes in the surrounding area. Your agent should be able to recommend a fair offer on the home you are looking to purchase. You still will want to independently do your own research. You may want to look at a list of the list price compared to the sales price in that neighborhood. On average, depending on market, many homes sell for 6% less then what is asked. Some indicators will show the seller’s eagerness to take an offer, like the amount of time the house has been on market.
The Terms When Buying
If you are providing the seller with close to asking price, you may have an opportunity to adjust the terms of your contract. These can include things like having them help with closing costs or providing a home warranty while the home is in escrow and the following year. This may be more difficult to do in a competitive market. Though asking never hurts, and you might be what you want.
Getting a Home Inspection
While the home is in escrow, the home should have a professional inspection of the property, roof, and for potential pest infestation. Many states require the seller of the home to state all defects of the property in writing as part of the contract. This sometimes includes things like recent home invasions, loud neighbors as well as other permits given. You may consider adding a clause that makes your contract null and void if any form of structural damage is found. Home buyers should additionally do their own inspection of the home and property.
During the write up of the purchase contract, state the maximum interest rate you will consider financing. This is to protect you from escalating interest rates which could increase your mortgage. Consider getting pre-approved for a loan. This makes you more like a cash buyer, which is more desirable to the seller.
For those of you looking to purchase a home in the Encinitas California area, I will be glad to help you on your way to buying a home. Feel free to call or send me an email to discuss your needs and the properties I have for your viewing pleasure. Home buying is an exciting time and I look forward to helping you through the experience.