How to Make an Offer to a Seller When Buying a Home
Although it may have seemed like it would never end, you have successfully completed most of the steps in the home buying process. This includes obtaining your credit report and correcting any errors, hiring Golf & Shore Properties to help you secure a new home, and pre-qualified for a mortgage loan in your price range. You have spent hours searching through home listings and your REALTOR® has shows you several homes that met the qualifications you needed in location, square footage, and other important factors.
After all this, you have found what seems like the perfect house for you and your family. It’s an exciting time, but you’re not quite done with the process. You still need to present an offer to the seller. While we understand you want to move quickly so no one else swoops up the home you want, knowing how this part of the home buying process works is essential so the seller accepts your offer.
Put Yourself in the Seller’s Position
Sellers typically expect to have some back-and-forth over the price of their home because REALTORS® prepare them for this. It is important to keep this in mind if their asking price seems high to you. Many sellers don’t expect buyers to agree to the original price. In this game of negotiations, offering five percent less than the seller’s stated price is a good rule of thumb. However, your REALTOR® at Golf & Shore Properties will give you a report that lists the selling prices of other homes in the area with features similar to the one you would like to buy. This gives you a good idea of how much to offer yourself.
Once you and your REALTOR® have decided on a price, he or she contacts the REALTOR® representing the seller to start the process of negotiations in earnest. It is common for sellers to consider your offer and then come back with a slightly higher one. Typically, the seller makes an offer somewhere between the amount you put forward and his or her original listing price. You have the option to accept the counter-offer at this point or to make a second offer.
We recommend that you don’t submit too many counter-offers as it drags out the process and may frustrate the seller to the point of considering offers from other buyers. Our experienced REALTORS® can let you know when continuing the negotiation process is in your best interest or if settling on a final offer is your best course of action.
We know that everything involved in buying a home is often overwhelming, especially for first-time buyers. Please leave a comment below or contact us with additional questions.