After weeks or months of searching, you’ve finally found it: the home of your dreams! While one challenge has been overcome, you now begin the negotiation process, starting with making your initial offer.
Here are a few tips to help ensure your success:
- Ask your REALTOR® to show you selling prices of similar homes in the same area, which sold over the past year. Offer the lowest price (or less) that any comparable home has sold for, and increase your offer to compensate for any additional features.
- If you have time and money, hire an appraiser, so you have objective data on current market conditions to support your offer.
- Offer a larger deposit if you’re competing for a hot property.
- Give your deposit to a neutral party (agent or escrow company) so it can be held in a trust account until the offer is accepted and the deal closes.
- Make sure the escrow instructions state that your deposit will be automatically returned if the deal doesn’t go through within a specified time period.
- Spell out the type of mortgage you’ve secured.
- Offer the full price if you want to beat out the competition or get better terms.
- Give yourself a way out of a purchase agreement with contingency clauses.
I hope these tips help you purchase your dream home. I’m always available to serve as your mortgage planner, and I appreciate any referrals to others who may benefit from my expertise.