You’ve seen the home and everything is absolutely perfect …well, everything except the price. Problem is, you aren’t sure how to make an offer on your new home. Here are a few helpful tips to remember when making an offer on a house.
Real Estate Tips: How to Make a Purchase Offer on a House
When making an offer on your new home, you know that one of three things will happen. The owner will respond by accepting your offer, rejecting your offer, or they will present you with a counter offer. If the answer is yes, you will be the proud owner of your dream home. If the answer is no, or if the owner submits a counter offer, you can agree to the proposal, respond with a new offer, or continue your house-hunting elsewhere.
Three Rules to Follow When Making an Offer
#1: Be respectful to the home owner. It is no secret that everyone, even those in real estate, would prefer to work with pleasant people. Maintain your likability and money talks, but don’t try to be too smooth. You don’t want your offer to say anything that might offend or turn off the home owner.
Owners are typically emotionally attached to their homes; it is therefore best to keep any major remodeling or landscaping plans to yourself. For this reason, you should also avoid pointing out cosmetic flaws such as “ugly paint” or “tacky wallpaper”, for example.
You can’t indirectly insult the owner, and then expect your offer to receive serious consideration, unless the owner is pretty desperate.
#2: Don’t be a pest. If your persistence becomes an annoyance to the homeowner, it isn’t likely that he will accept your offer. Not to mention you’ll appear desperate. Avoid making too many visits to the home or staying too long, or the owner may become irritated. It is important to remember that people lead busy lives and enjoy their privacy.
#3: Avoid requesting impossible closing dates and absurdly low offers. Don’t insult the home owner. When making an offer on a house, your proposal should be high enough to trump the offers of other buyers and yet remain affordable. You don’t want to end up with mortgage payments that are higher than you can afford. Don’t be tempted to make a lowball offer that only infuriates the owner. If you do, you’ll likely hear crickets instead of a counteroffer.
On the same note, if the owner feels as if he is being pushed out of his home, the response will probably not be favorable.
Final Thoughts on How to Make an Offer
If you’re unsure whether an offer is fair, consult your real estate agent for advice. Your real estate agent will not only know the true value of the real estate property, but will have a pretty good idea of what offers the owner will consider and which he will turn down. If you really want the home, make a strong offer. But it’s best to remember that your mortgage payment shouldn’t exceed 28% of your income.
If you have questions about how to make an offer on a house, or you just need excellent real estate professionals on your side, contact us today!