Are you buying a house? Finally, it is time to fulfill your American dream. But, bidding wars are common today. The real estate market is very hot in some cities. How to make a good offer on a house and convince sellers to sell a house to you? Sometimes, the price is not the main and only factor. Most home sellers will sell a house to a person they like, even when the price is lower.
Tips on how to make a good offer on a house
To purchase a house during the pandemic, you should follow a simple guide when buying a house. Research the real estate market in the city where you are buying a home and know what the average home prices are there. It is the first step in this process. Here are some steps to follow and your offer will win.
Most homeowners won’t show you a house if you don’t get your mortgage pre-approved. The process of buying a house starts with a mortgage pre-approval from a lender, usually the bank. With a pre-approval, you will know your budget, how much you can save, and you will show sellers that you are serious.
Stick to your budget
If your budget is, for example, $300k, it does not mean you should spend all that money on buying a house. Keep in mind that there are other fees too. Closing fees, paying your real estate agent, renovating a home, buying furniture, decorating, and moving costs. Leave some “room” in your offer price.
It is important to research the neighborhood, the seller, as well as the market. You will need to know what a fair offer price for a house in that area is. But, it is not the only thing to know. Research homeowner’s motivations for selling or maybe you have some mutual friends. That will all help you with negotiating and getting a better price.
Make a respectable offer
Make a good offer on a house and a respectable one. What does it mean? If the value of the house is $250k, do not offer $150k, it is disrespectful. The seller will be insulted by your bid and even if you offer $250k after all, they won’t take it. You can offer below the price, but not that much.
Hire a real estate agent
Hire your own real estate agent to assist you because the seller’s real estate agent has a job to promote the seller’s interests, not yours.
Don’t be emotional
Think reasonably. In some cases, buyers are blinded by a pool, hardwood floors, secret rooms and they overlook obvious defects of a house. Also, to be sure, inspect a house professionally and you will know what a real situation is. This will help you to make a good offer on a house.