Have you been looking for a home to purchase and finally found one that interests you? If so, you'll need to put in a formal offer with the seller and hope that they accept it. Here are some tips for making an offer to give you the best chance of having it accepted.
Act Quickly
Making an offer on a home is not something you want to think about for weeks. A great home can get an offer on it the same day it goes on the market, and it will be under contract before you know it. Act quickly when you want to make an offer to ensure that you do not end up being beaten to the home by another buyer.
Get A Mortgage Pre-Approval
A seller is not just looking for a buyer that is offering the most money, since they also want to pick a buyer that will be able to close on the home and secure financing. Every day that their home is not sold is another day of costs that add up between utilities, property taxes, and even maintenance. That's why it's important to pick an offer that they are confident will close on the home.
The best way to prove to the seller that you'll be able to buy the home is to show a pre-approval letter from a mortgage lender. This shows that you have already gone through the basic application process and that the lender has approved you for a loan that is greater than the home you want to buy. This can give the seller some confidence that you'll be approved for your mortgage at the end of the process.
Make A Large Down Payment
Another way to show that you have your finances in order is to tell the seller that you will be making a large down payment for the home. This will show that you have the cash on hand to afford a home and will increase the chance of your mortgage being approved. If a seller is comparing two very similar offers, it is possible that the size of the down payment is a deciding factor.
Research The Price Of Recently Sold Homes
You'll want to make sure that the price you are offering is a fair price for the home. That's why it can help to have a real estate agent perform a comparative market analysis. This process involves looking at recently sold homes in the area that are similar to the one you want to purchase and comparing their final price to the asking price of the home you like. This can definitely help you with negotiating, as you have some data to back up your offer.
Look into homes for sale to find out more.
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