Once you have made the decision that it is time to move, there are many aspects of purchasing a new home that can be exciting. Once your dream home has been found, you will have to make an offer. The process of submitting an offer for a home can be overwhelming and stressful. You most likely will not know who your competition is or the details of their offer.
The professionals here at Talons Group are ready to help you search for a home and submit a strong offer. Here are a few components to consider when forming and submitting a home offer:
Money has a huge impact on lots of things in life, including purchasing a home. While every home buying situation is different if you know that you might have some competition you may want to offer more than the asking price to ensure you have the best chance.
According to the Mortgage Reports, if there are competing buyers, offers typically need to exceed 1 to 3 percent over the asking price.
An above asking price along with other strong offer components will help to increase your chance of being chosen as the new homeowner. If you like a property enough, it may be worth it to offer a little more money!
While you may have a specific move-in date that you have in mind, it might not match up with the date that the seller is looking to move out. Having an adjustable move-in date and understanding the timeline that the sellers have in mind could be used to your advantage.
If other individuals or families that are submitting offers have specific move-in dates but you are able to be flexible with yours, it could be more appealing to the seller.
Contingencies are any additional tasks or things that will need to be done that the offer depends on.
Some common home contingencies are the following:
Home sale contingency: A home sale contingency states that a buyer, who depends on the funds of their current property to sell, will be allotted a certain amount of time to sell their current property before a new buyer can be secured. If the buyer is unable to sell their current home, they are able to withdraw their offer and regain their deposit.
Home inspection contingency: This contingency is when a buyer requests that a home inspection is completed and can retract or negotiate the price if any issues are detected. Once the inspection is complete, the buyer can negotiate the price or insist that the problems are fixed prior to purchasing. If a deal can not be made, the buyer is able to exit the offer.
Mortgage contingency: A mortgage contingency is set into place to ensure both the homebuyer and seller are protected if the buyer can’t qualify for financing or need a loan to purchase the home. Buyers can receive no penalty if they back out of the contract within the set contingency period, so setting a mortgage contingency is important for both parties of the home buying process.
Earnest Money Deposit
While not necessary, putting an earnest deposit on a home will help to strengthen the appearance of your offer. This 1 percent deposit can be seen as a sign of commitment to those that you are purchasing a home from. This deposit will be put toward the down payment if the offer is accepted.
It’s important to remember that although your home offer might contain all of the components of a solid offer, you still have competition. There is a chance that your competition has a stronger offer than the one you have offered and you may not be chosen to be the new homeowners.
Here at Talons Group, we want you to submit the most competitive offer that you can in order to ensure the best chance at getting your dream home. Our professionals are the area and industry’s experts, ready to help you along every step of the home buying process.
We understand that searching for a new home can be stressful, and the offer process even more so. Contact us today to learn more about how we can assist you.