he offer is a critical have trouble getting financing.
part of the home buying That's time wasted!
process. It's when you, as
the buyer, say to the seller: 2. Make the offer contingent.
"Here's what I'm willing to pay
for this house." It's a safe practice to make your
offer contingent on two things --
This home buying guide will loan approval and inspection.
explain the five factors of a Even if you've been pre-approved
smart offer. by a lender, there's a chance you
could get turned down for the
1. Base the offer on hard actual loan (especially if the
evidence. price you agree to pay is higher
than the pre-approval amount).
Before making an offer, you
should have a good idea of the The home inspection is also
home's estimated value. This critical, because you won't know
knowledge will come from the true "health" of the house
understanding your market based on a casual walk-through.
conditions and knowing what Only a qualified home inspector
comparable homes are selling for can dig up the facts. Your offer
in your area. Making a realistic should be contingent on both of
offer will increase your chances these things.
of acceptance, while preventing
you from overpaying. 3. Set a time limit.
If you agree to a price higher The last thing you want to do is
than the home's value, and the sit around wondering when you'll
subsequent home appraisal comes hear back from the sellers (if at
in lower than that price, you'll all). For this reason, it's
common practice to put a time counteroffer.
limit on a home buying offer. It
shows the seller you're serious 5. Know your limits.
and prevents the process from
dragging on. Some buyers limit If you've been pre-approved for a
their offer to 24 hours, some for certain loan amount by a mortgage
48 hours, and others even longer. lender, then you have a pretty
It will depend on your comfort good idea of your limitations. Be
level and unique circumstances. careful making offers that exceed
your pre-approval amount (unless
4. Hope for acceptance, but plan you can make up the difference in
for everything. cash).
Of course you want the seller to Keep this home buying guide in
accept your offer. But there's mind when making offers. Practice
always a chance they won't, so the five factors of a smart
you need to have a plan in place offer. Good luck and happy home
so you can react quickly. Discuss buying!
this with your agent before
making the offer. Have a plan for * Copyright 2006, Brandon
three different scenarios -- an Cornett.
acceptance, a rejection, and a
About the Author:
This home buying guide was brought to you by http://HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Increase your home buying I.Q. at http://www.homebuyinginstitute.com!
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Brandon Cornett
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