I Want to Buy The House. What Now?
When you buy a house, you and the sellers will enter into a written contract. The first stage of this written contract is your written proposal, or "offer." This offer specifies all of the terms and conditions of the purchase - including everything from price, to who pays for what costs, to any "contingencies," or purchase conditions.
Your agent will be able to give you a standard offer form that is consistent with state laws and regulations. He/she will help you fill it out, answering any questions that you have along the way.
Take note: before making an offer, find out first if the sellers are listening to offers yet. If the house is new to the market, the sellers may want to show the house for a certain period of time before even considering offers. How Does the Offer Get Made? Once you know that the sellers are listening to offers, your agent should present your offer to the sellers and the listing agent. Ideally, this is done in person, so that the sellers have the opportunity to ask questions about your offer. If this isn't possible, your agent can present the information to the listing agent, who will then communicate with the sellers. If your agent can't meet face-to-face with the sellers, then she should prepare a cover letter to accompany that highlights some of your offer's more positive features (for example, if you're pre-approved for a mortgage of this level, or willing to have a speedy closing). With the offer, it's necessary to make a "good faith" cash deposit. The amount of the deposit will vary depending on the community and house you're looking at, but is typically at least a couple of hundred dollars. If you don't accompany your offer with this deposit (also called "earnest money), the seller won't take your offer seriously. A real estate agent or attorney can hold the deposit, which - if your offer is accepted - will become part of your down payment. If your offer isn't accepted, or if you need to withdraw your offer (i.e., if you can't get financing, or if the inspection turns up too many serious problems), it shouldn't be hard to get the deposit back. What's Typically Included in an Offer? Obviously, the price you're offering is an important component of your offer. But it's just one of many features that you need to articulate. Other features may include: The deposit amount Your proposed down payment and mortgage An itemization of what's included in the sale Closing date Home occupancy date Seller's promise to provide a clear title of ownership Provisions about who pays for title insurance, termite inspections, etc. Expiration date for the offer Provisions that allow you to take a final walk-through inspection just prior to closing, or which allow for an attorney review of the contract, inspection for environmental hazards, etc. Contingencies (see below), and a time period for performing the contingencies Be aware that if your offer is accepted as is, it will become a binding sales contract. It's really important, therefore, that you're comfortable with the terms of your purchase offer. How Much Should I Offer? How much you should offer depends on many factors. First, it depends on whether you're in a "buyer's market" (many more houses on the market than there are buyers for them) or a "seller's market" (many more buyers looking for homes than there are homes available). In a buyer's market, you can probably offer the list price or below. In many strong sellers' markets, on the other hand, buyers typically make offers well above the list price (often engaging in bidding wars). However, your offer should depend on a number of other factors. In general, you should keep these rules in mind: Your real estate agent will know whether comparable homes typically sell for the list price, or - if not - for how much above/below the list price. Ask your agent about recent sales, and use this as a guide. If you're in a very tight real estate market, with a lot of competition, you should make your first offer your best offer. Find out as much as you can about the sellers' motivation. Have they already purchased another home? Is their job being transferred to another state? Are they going through a divorce and need to liquidate their assets? If the seller needs to sell quickly, they may be willing to consider a lower price, in exchange for a speedy closing. If the property has been on the market for a long time, you may be able to offer a lower price. The "cleaner" your offer - the less contingencies and requirements of the seller - the more willing the sellers will be to consider your offer. Should I Make a Low-Ball Offer? If you're in a seller's market, you probably don't want to make a low-ball offer. However, many people choose to make low-ball offers in buyers' markets. Be aware, however, that in making a low-ball offer, you risk losing the property to another buyer. You also may risk insulting the sellers, who then won't want to negotiate with you at all. Is There Anything That Will Make the Seller More Likely to Accept My Offer? Absolutely, if you're an all-cash buyer, you're in the best bargaining position. Other factors that will help your bargaining position are: if you've been pre-approved for a mortgage of this level, if you don't need to sell another home prior to buying this one, if you put in fewer contingencies or requirements of the seller, if the house has been on the market for a long time, if you're willing to close quickly. What Happens if The Sellers Accept My Offer? If the sellers accept your offer "as is," it becomes a binding contract. That's why you need to make sure that you're prepared to meet the terms of your offer as you present them. Take time to read the standard offer, think carefully about the terms therein, and be sure that the offer includes any contingencies you might need (see below). What's A "Counter Offer?" If the sellers like much about your offer, but not everything, they'll probably respond with a counter offer. The counter offer is based on the offer you made, but includes the changes that they prefer. Just as the sellers were free to accept, reject, or counter your initial offer, you're now free to accept, reject, or propose changes to their counter offer. For example, if the sellers like everything about your offer except the proposed closing date, their counter offer will include everything from your initial offer, but with a new closing date. If they aren't happy with the price, the offer will include a higher sales price. Whether you accept the counter offer, propose a counter offer of your own, or just reject the counter offer outright, is up to you. There may be some back and forth between you and the sellers. Each time a change is made in the terms, the other side is free to accept, reject, or counter the offer again. Don't be afraid of this negotiation; this process is very common. Not to mention that your home is one of the largest, most important purchases you'll ever make, and it's critical that you're completely comfortable with the terms. When Should I Walk Away From Negotiations? Before starting negotiations, you should set a maximum price that you'll be willing to pay for the home. That limit should not exceed (a) what you're able to pay for the home, or (b) the market value for the home. Although you don't want to lose your dream house over a few thousand dollars, you should be prepared to walk away from the negotiations if the sellers won't go below that maximum price. It's possible that they have an unrealistic expectation regarding the home's value. It's also possible that you simply can't afford the home. What Are Contingencies? Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
How Does the Offer Get Made?
Once you know that the sellers are listening to offers, your agent should present your offer to the sellers and the listing agent. Ideally, this is done in person, so that the sellers have the opportunity to ask questions about your offer. If this isn't possible, your agent can present the information to the listing agent, who will then communicate with the sellers. If your agent can't meet face-to-face with the sellers, then she should prepare a cover letter to accompany that highlights some of your offer's more positive features (for example, if you're pre-approved for a mortgage of this level, or willing to have a speedy closing).
With the offer, it's necessary to make a "good faith" cash deposit. The amount of the deposit will vary depending on the community and house you're looking at, but is typically at least a couple of hundred dollars. If you don't accompany your offer with this deposit (also called "earnest money), the seller won't take your offer seriously.
A real estate agent or attorney can hold the deposit, which - if your offer is accepted - will become part of your down payment. If your offer isn't accepted, or if you need to withdraw your offer (i.e., if you can't get financing, or if the inspection turns up too many serious problems), it shouldn't be hard to get the deposit back. What's Typically Included in an Offer? Obviously, the price you're offering is an important component of your offer. But it's just one of many features that you need to articulate. Other features may include: The deposit amount Your proposed down payment and mortgage An itemization of what's included in the sale Closing date Home occupancy date Seller's promise to provide a clear title of ownership Provisions about who pays for title insurance, termite inspections, etc. Expiration date for the offer Provisions that allow you to take a final walk-through inspection just prior to closing, or which allow for an attorney review of the contract, inspection for environmental hazards, etc. Contingencies (see below), and a time period for performing the contingencies Be aware that if your offer is accepted as is, it will become a binding sales contract. It's really important, therefore, that you're comfortable with the terms of your purchase offer. How Much Should I Offer? How much you should offer depends on many factors. First, it depends on whether you're in a "buyer's market" (many more houses on the market than there are buyers for them) or a "seller's market" (many more buyers looking for homes than there are homes available). In a buyer's market, you can probably offer the list price or below. In many strong sellers' markets, on the other hand, buyers typically make offers well above the list price (often engaging in bidding wars). However, your offer should depend on a number of other factors. In general, you should keep these rules in mind: Your real estate agent will know whether comparable homes typically sell for the list price, or - if not - for how much above/below the list price. Ask your agent about recent sales, and use this as a guide. If you're in a very tight real estate market, with a lot of competition, you should make your first offer your best offer. Find out as much as you can about the sellers' motivation. Have they already purchased another home? Is their job being transferred to another state? Are they going through a divorce and need to liquidate their assets? If the seller needs to sell quickly, they may be willing to consider a lower price, in exchange for a speedy closing. If the property has been on the market for a long time, you may be able to offer a lower price. The "cleaner" your offer - the less contingencies and requirements of the seller - the more willing the sellers will be to consider your offer. Should I Make a Low-Ball Offer? If you're in a seller's market, you probably don't want to make a low-ball offer. However, many people choose to make low-ball offers in buyers' markets. Be aware, however, that in making a low-ball offer, you risk losing the property to another buyer. You also may risk insulting the sellers, who then won't want to negotiate with you at all. Is There Anything That Will Make the Seller More Likely to Accept My Offer? Absolutely, if you're an all-cash buyer, you're in the best bargaining position. Other factors that will help your bargaining position are: if you've been pre-approved for a mortgage of this level, if you don't need to sell another home prior to buying this one, if you put in fewer contingencies or requirements of the seller, if the house has been on the market for a long time, if you're willing to close quickly. What Happens if The Sellers Accept My Offer? If the sellers accept your offer "as is," it becomes a binding contract. That's why you need to make sure that you're prepared to meet the terms of your offer as you present them. Take time to read the standard offer, think carefully about the terms therein, and be sure that the offer includes any contingencies you might need (see below). What's A "Counter Offer?" If the sellers like much about your offer, but not everything, they'll probably respond with a counter offer. The counter offer is based on the offer you made, but includes the changes that they prefer. Just as the sellers were free to accept, reject, or counter your initial offer, you're now free to accept, reject, or propose changes to their counter offer. For example, if the sellers like everything about your offer except the proposed closing date, their counter offer will include everything from your initial offer, but with a new closing date. If they aren't happy with the price, the offer will include a higher sales price. Whether you accept the counter offer, propose a counter offer of your own, or just reject the counter offer outright, is up to you. There may be some back and forth between you and the sellers. Each time a change is made in the terms, the other side is free to accept, reject, or counter the offer again. Don't be afraid of this negotiation; this process is very common. Not to mention that your home is one of the largest, most important purchases you'll ever make, and it's critical that you're completely comfortable with the terms. When Should I Walk Away From Negotiations? Before starting negotiations, you should set a maximum price that you'll be willing to pay for the home. That limit should not exceed (a) what you're able to pay for the home, or (b) the market value for the home. Although you don't want to lose your dream house over a few thousand dollars, you should be prepared to walk away from the negotiations if the sellers won't go below that maximum price. It's possible that they have an unrealistic expectation regarding the home's value. It's also possible that you simply can't afford the home. What Are Contingencies? Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
What's Typically Included in an Offer?
Obviously, the price you're offering is an important component of your offer. But it's just one of many features that you need to articulate. Other features may include:
Be aware that if your offer is accepted as is, it will become a binding sales contract. It's really important, therefore, that you're comfortable with the terms of your purchase offer. How Much Should I Offer? How much you should offer depends on many factors. First, it depends on whether you're in a "buyer's market" (many more houses on the market than there are buyers for them) or a "seller's market" (many more buyers looking for homes than there are homes available). In a buyer's market, you can probably offer the list price or below. In many strong sellers' markets, on the other hand, buyers typically make offers well above the list price (often engaging in bidding wars). However, your offer should depend on a number of other factors. In general, you should keep these rules in mind: Your real estate agent will know whether comparable homes typically sell for the list price, or - if not - for how much above/below the list price. Ask your agent about recent sales, and use this as a guide. If you're in a very tight real estate market, with a lot of competition, you should make your first offer your best offer. Find out as much as you can about the sellers' motivation. Have they already purchased another home? Is their job being transferred to another state? Are they going through a divorce and need to liquidate their assets? If the seller needs to sell quickly, they may be willing to consider a lower price, in exchange for a speedy closing. If the property has been on the market for a long time, you may be able to offer a lower price. The "cleaner" your offer - the less contingencies and requirements of the seller - the more willing the sellers will be to consider your offer. Should I Make a Low-Ball Offer? If you're in a seller's market, you probably don't want to make a low-ball offer. However, many people choose to make low-ball offers in buyers' markets. Be aware, however, that in making a low-ball offer, you risk losing the property to another buyer. You also may risk insulting the sellers, who then won't want to negotiate with you at all. Is There Anything That Will Make the Seller More Likely to Accept My Offer? Absolutely, if you're an all-cash buyer, you're in the best bargaining position. Other factors that will help your bargaining position are: if you've been pre-approved for a mortgage of this level, if you don't need to sell another home prior to buying this one, if you put in fewer contingencies or requirements of the seller, if the house has been on the market for a long time, if you're willing to close quickly. What Happens if The Sellers Accept My Offer? If the sellers accept your offer "as is," it becomes a binding contract. That's why you need to make sure that you're prepared to meet the terms of your offer as you present them. Take time to read the standard offer, think carefully about the terms therein, and be sure that the offer includes any contingencies you might need (see below). What's A "Counter Offer?" If the sellers like much about your offer, but not everything, they'll probably respond with a counter offer. The counter offer is based on the offer you made, but includes the changes that they prefer. Just as the sellers were free to accept, reject, or counter your initial offer, you're now free to accept, reject, or propose changes to their counter offer. For example, if the sellers like everything about your offer except the proposed closing date, their counter offer will include everything from your initial offer, but with a new closing date. If they aren't happy with the price, the offer will include a higher sales price. Whether you accept the counter offer, propose a counter offer of your own, or just reject the counter offer outright, is up to you. There may be some back and forth between you and the sellers. Each time a change is made in the terms, the other side is free to accept, reject, or counter the offer again. Don't be afraid of this negotiation; this process is very common. Not to mention that your home is one of the largest, most important purchases you'll ever make, and it's critical that you're completely comfortable with the terms. When Should I Walk Away From Negotiations? Before starting negotiations, you should set a maximum price that you'll be willing to pay for the home. That limit should not exceed (a) what you're able to pay for the home, or (b) the market value for the home. Although you don't want to lose your dream house over a few thousand dollars, you should be prepared to walk away from the negotiations if the sellers won't go below that maximum price. It's possible that they have an unrealistic expectation regarding the home's value. It's also possible that you simply can't afford the home. What Are Contingencies? Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
How Much Should I Offer?
How much you should offer depends on many factors. First, it depends on whether you're in a "buyer's market" (many more houses on the market than there are buyers for them) or a "seller's market" (many more buyers looking for homes than there are homes available). In a buyer's market, you can probably offer the list price or below. In many strong sellers' markets, on the other hand, buyers typically make offers well above the list price (often engaging in bidding wars).
However, your offer should depend on a number of other factors. In general, you should keep these rules in mind:
Should I Make a Low-Ball Offer?
If you're in a seller's market, you probably don't want to make a low-ball offer. However, many people choose to make low-ball offers in buyers' markets. Be aware, however, that in making a low-ball offer, you risk losing the property to another buyer. You also may risk insulting the sellers, who then won't want to negotiate with you at all. Is There Anything That Will Make the Seller More Likely to Accept My Offer? Absolutely, if you're an all-cash buyer, you're in the best bargaining position. Other factors that will help your bargaining position are: if you've been pre-approved for a mortgage of this level, if you don't need to sell another home prior to buying this one, if you put in fewer contingencies or requirements of the seller, if the house has been on the market for a long time, if you're willing to close quickly. What Happens if The Sellers Accept My Offer? If the sellers accept your offer "as is," it becomes a binding contract. That's why you need to make sure that you're prepared to meet the terms of your offer as you present them. Take time to read the standard offer, think carefully about the terms therein, and be sure that the offer includes any contingencies you might need (see below). What's A "Counter Offer?" If the sellers like much about your offer, but not everything, they'll probably respond with a counter offer. The counter offer is based on the offer you made, but includes the changes that they prefer. Just as the sellers were free to accept, reject, or counter your initial offer, you're now free to accept, reject, or propose changes to their counter offer. For example, if the sellers like everything about your offer except the proposed closing date, their counter offer will include everything from your initial offer, but with a new closing date. If they aren't happy with the price, the offer will include a higher sales price. Whether you accept the counter offer, propose a counter offer of your own, or just reject the counter offer outright, is up to you. There may be some back and forth between you and the sellers. Each time a change is made in the terms, the other side is free to accept, reject, or counter the offer again. Don't be afraid of this negotiation; this process is very common. Not to mention that your home is one of the largest, most important purchases you'll ever make, and it's critical that you're completely comfortable with the terms. When Should I Walk Away From Negotiations? Before starting negotiations, you should set a maximum price that you'll be willing to pay for the home. That limit should not exceed (a) what you're able to pay for the home, or (b) the market value for the home. Although you don't want to lose your dream house over a few thousand dollars, you should be prepared to walk away from the negotiations if the sellers won't go below that maximum price. It's possible that they have an unrealistic expectation regarding the home's value. It's also possible that you simply can't afford the home. What Are Contingencies? Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
Is There Anything That Will Make the Seller More Likely to Accept My Offer?
Absolutely, if you're an all-cash buyer, you're in the best bargaining position. Other factors that will help your bargaining position are: if you've been pre-approved for a mortgage of this level, if you don't need to sell another home prior to buying this one, if you put in fewer contingencies or requirements of the seller, if the house has been on the market for a long time, if you're willing to close quickly. What Happens if The Sellers Accept My Offer? If the sellers accept your offer "as is," it becomes a binding contract. That's why you need to make sure that you're prepared to meet the terms of your offer as you present them. Take time to read the standard offer, think carefully about the terms therein, and be sure that the offer includes any contingencies you might need (see below). What's A "Counter Offer?" If the sellers like much about your offer, but not everything, they'll probably respond with a counter offer. The counter offer is based on the offer you made, but includes the changes that they prefer. Just as the sellers were free to accept, reject, or counter your initial offer, you're now free to accept, reject, or propose changes to their counter offer. For example, if the sellers like everything about your offer except the proposed closing date, their counter offer will include everything from your initial offer, but with a new closing date. If they aren't happy with the price, the offer will include a higher sales price. Whether you accept the counter offer, propose a counter offer of your own, or just reject the counter offer outright, is up to you. There may be some back and forth between you and the sellers. Each time a change is made in the terms, the other side is free to accept, reject, or counter the offer again. Don't be afraid of this negotiation; this process is very common. Not to mention that your home is one of the largest, most important purchases you'll ever make, and it's critical that you're completely comfortable with the terms. When Should I Walk Away From Negotiations? Before starting negotiations, you should set a maximum price that you'll be willing to pay for the home. That limit should not exceed (a) what you're able to pay for the home, or (b) the market value for the home. Although you don't want to lose your dream house over a few thousand dollars, you should be prepared to walk away from the negotiations if the sellers won't go below that maximum price. It's possible that they have an unrealistic expectation regarding the home's value. It's also possible that you simply can't afford the home. What Are Contingencies? Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
What Happens if The Sellers Accept My Offer?
If the sellers accept your offer "as is," it becomes a binding contract. That's why you need to make sure that you're prepared to meet the terms of your offer as you present them. Take time to read the standard offer, think carefully about the terms therein, and be sure that the offer includes any contingencies you might need (see below). What's A "Counter Offer?" If the sellers like much about your offer, but not everything, they'll probably respond with a counter offer. The counter offer is based on the offer you made, but includes the changes that they prefer. Just as the sellers were free to accept, reject, or counter your initial offer, you're now free to accept, reject, or propose changes to their counter offer. For example, if the sellers like everything about your offer except the proposed closing date, their counter offer will include everything from your initial offer, but with a new closing date. If they aren't happy with the price, the offer will include a higher sales price. Whether you accept the counter offer, propose a counter offer of your own, or just reject the counter offer outright, is up to you. There may be some back and forth between you and the sellers. Each time a change is made in the terms, the other side is free to accept, reject, or counter the offer again. Don't be afraid of this negotiation; this process is very common. Not to mention that your home is one of the largest, most important purchases you'll ever make, and it's critical that you're completely comfortable with the terms. When Should I Walk Away From Negotiations? Before starting negotiations, you should set a maximum price that you'll be willing to pay for the home. That limit should not exceed (a) what you're able to pay for the home, or (b) the market value for the home. Although you don't want to lose your dream house over a few thousand dollars, you should be prepared to walk away from the negotiations if the sellers won't go below that maximum price. It's possible that they have an unrealistic expectation regarding the home's value. It's also possible that you simply can't afford the home. What Are Contingencies? Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
What's A "Counter Offer?"
If the sellers like much about your offer, but not everything, they'll probably respond with a counter offer. The counter offer is based on the offer you made, but includes the changes that they prefer. Just as the sellers were free to accept, reject, or counter your initial offer, you're now free to accept, reject, or propose changes to their counter offer.
For example, if the sellers like everything about your offer except the proposed closing date, their counter offer will include everything from your initial offer, but with a new closing date. If they aren't happy with the price, the offer will include a higher sales price. Whether you accept the counter offer, propose a counter offer of your own, or just reject the counter offer outright, is up to you.
There may be some back and forth between you and the sellers. Each time a change is made in the terms, the other side is free to accept, reject, or counter the offer again. Don't be afraid of this negotiation; this process is very common. Not to mention that your home is one of the largest, most important purchases you'll ever make, and it's critical that you're completely comfortable with the terms. When Should I Walk Away From Negotiations? Before starting negotiations, you should set a maximum price that you'll be willing to pay for the home. That limit should not exceed (a) what you're able to pay for the home, or (b) the market value for the home. Although you don't want to lose your dream house over a few thousand dollars, you should be prepared to walk away from the negotiations if the sellers won't go below that maximum price. It's possible that they have an unrealistic expectation regarding the home's value. It's also possible that you simply can't afford the home. What Are Contingencies? Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
When Should I Walk Away From Negotiations?
Before starting negotiations, you should set a maximum price that you'll be willing to pay for the home. That limit should not exceed (a) what you're able to pay for the home, or (b) the market value for the home. Although you don't want to lose your dream house over a few thousand dollars, you should be prepared to walk away from the negotiations if the sellers won't go below that maximum price. It's possible that they have an unrealistic expectation regarding the home's value. It's also possible that you simply can't afford the home. What Are Contingencies? Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
What Are Contingencies?
Most offers include at least two contingencies. First, the offer is typically contingent on the buyers' ability to obtain a mortgage. Second, it's usually contingent on an inspection, which allows buyers to have professionals inspect the property on their behalf. These aren't the only possible contingencies, however - your circumstance may warrant other contingencies. Talk to your real estate agent about other contingencies which may apply. Why Do I Need an Inspection? During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems. This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations. It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
Why Do I Need an Inspection?
During an inspection, a professional checks the safety and condition of your potential new home. Inspectors focus especially on the home's structure, construction, and mechanical systems of the house, making you aware of any repairs that might be needed. They check things like the electrical system, insulation, ventilation, plumbing, water source and quality, presence of pests, ability to withstand the weather, foundation, doors, windows, ceilings, walls, and roof. At the end of the inspection, you'll receive a written report detailing the home's condition and potential problems.
This is your chance to detect any serious problems (which might become expensive once you move in), so be sure to hire an inspector who is qualified, experienced, and who comes with good recommendations.
It's a good idea to be there during the inspection. The inspector will be able to answer any questions, and explain in detail any problem areas. What if the Inspection Turns Up Potential Problems? If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase. If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
What if the Inspection Turns Up Potential Problems?
If you've included home inspection among the contingencies of your purchase offer, then anything you learn during an inspection is a potential "out." If problems are detected during an inspection, you can either withdraw your offer, renegotiate the purchase price if repairs are needed, or request that the sellers fix the problems prior to purchase.
If, on the other hand, you didn't include an inspection clause in your purchase offer, then it's your responsibility to fix the problems that turn up during the inspection. That's why it's important to include the inspection contingency. Do I Need to Get Homeowner's Insurance Right Away? Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
Do I Need to Get Homeowner's Insurance Right Away?
Yes, you need to have paid your homeowner's insurance policy before closing. It's a good idea to get the insurance agents involved with the homebuying process early - they're often a great source of information about home safety, and they have many tips for keeping insurance premiums low. What Are Typical Closing Costs? Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
What Are Typical Closing Costs?
Before closing on a home, you'll be responsible for a host of closing costs - which cover the legal transfer of a property to your name - and other costs of taking out a mortgage. Closing costs typically range from 3% to 6% of the cost of the home. These costs may include attorney's fees, property taxes, interest from date of closing to 30 days before first monthly payment, paid receipt for homeowner's insurance policy, first payment to escrow account for future real estate taxes and insurance, title insurance, loan discount points, and more.
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