(925) 786-5064
(925) 786-5064
(925) 786-5064

 

 

How To Make An Offer on a Home

 

 

You found a house and want to make an offer, how do you go about making an offer? Before you decide on the price, do your homework, which will help you determine what is a fair offer.

  • What’s the current market situation….is it a buyers market or seller's market
  • How many other homes are for sale in the area you are looking
  • In your price range how many homes have sold recently, what did they sell for and how many days on the market. Generally, the days on market will give you an indication of how quickly you need to submit an offer.
  • What was the condition of these homes and the condition of the homes on the market
  • Be as quick as you can when submitting your offer—especially if the house hasn’t been on the market long. Know what you’re looking for in advance and assume you’re not the only person looking at the house—because you probably aren’t.
  • If the house has been on the market for a while, find out the reason. If the house has issues, this could influence your offer.
  • Has the seller received any other offers on the house? And if so, why were they not accepted. The listing agent may not share this information with your agent, yet it is worth asking.
  • Pre-Approval letter to submit with the offer – this is very important as most sellers won’t consider an offer without knowing that you can finalize the purchase.

 

At this point, your agent will prepare the Residential Purchase Agreement to make the offer, which will include the price you are willing to pay, the earnest money to accompany the offer, the down payment amount, the financing terms, the closing date, the contingencies and days to remove the contingencies, and the expiration of the offer. As an aside, the purpose of the earnest money lets the seller knows you are serious about the offer. The earnest money is held in an escrow account and applied to your down payment at the time of closing.

Regardless of whether it is a buyer’s market or seller’s market you want the contract to be as clean as possible, by that I mean keep your contingency time frame short, get your inspections done right away. You can ask the seller to fix things, especially if there is something major or of concern.

And keep in mind, you may not be the only one submitting an offer. You may have only one chance to make that offer so if you really want to the house, go with your highest and best.



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