What should I do before I make an offer on the home?
You should be very careful while making an offer to the
seller. There are many guidelines that can be followed to
ensure that you are getting the best deal. Use the checklist
below for making the best offer.
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● Check the market
value of the house. Make sure that the market value
of the house is not higher than the asking price. You
can do this by asking the seller or his agent a
comparative market analysis on the property. This is a
written report that reviews prices of comparable homes
that are currently on the market, that are currently
under contract, and that have closed (sold) in the past
several months. |
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● Condition of the
house. Prior to making an offer make sure that you
know of any major problems with the house. Question the
owner about the structural soundness and condition of
the house. Get the house inspected by a reliable
inspection agent. |
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● Negotiate the
price. Check whether the owner is anxious to sell
the house. Be mindful of your offers. Very few
houses will be sold after the third counter-offer from
the seller (this means after you have made 3 offers, the
seller will possibly make a third counter-offer, but if
it is not acceptable to you, then the chances of you
getting the house at your terms is very small). |
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● Check the
financing terms. Remember that there are two aspects
to an offer: the price and the financing terms. For
example, if the seller is willing to offer attractive
financing terms, including paying for the title search,
the home inspection, and other settlement costs, you may
not want to quibble over the price. |
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● Do not accept any
verbal agreements. Have everything in writing. |
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● Be specific
about what is in your offer such as your proposed
purchase price, any concessions from the seller, what
conveyances are included in the house, financial and
other contingencies, and the deposit that you would be
paying. |
You are now near the end and are ready for the
Closing.
Get negotiating tips |
