Finding the right home can spark feelings of relief, excitement, and anxiety all at once. Once you know a home is the right fit, many of our clients want to act fast. However, first-time homebuyers are often unfamiliar with the process and don't know how to go about making an offer. Luckily, our REALTORS® are here to help.
There are lots of steps to making an offer, many of which you should start prior to home shopping. If you just discovered your perfect home, here is how to approach crafting the right offer:
- Evaluate The Market
The real estate market is often changing, and its current state may help inform the strategy behind your offer. If you're looking to purchase one of these Bronxville homes for sale in a seller's market, you'll likely need to be competitive with your offer. If the home market is cooling, then you're better positioned to be in the driver's seat. Work with your agent to understand local recent housing market trends.
- Set Your Price
The next step in making an offer is determining how much you're willing to pay. Ask the seller's agent if they've received other offers. If they have, you might need to be competitive and go over asking price. If they haven't, you may be able to get away with even going slightly lower. Your Realtor can also do some research into nearby home sales to see what other homes have gone for. These data points can serve as a good baseline for a fair offer.
- Calculate Your Estimated Monthly Mortgage Payment
When making an offer, the most important step is to ensure you can afford your proposed sale price. If you're financing the purchase, it's important to try to gain an accurate sense of the monthly cost of your new home. Your monthly mortgage payment will include principal, interest, taxes, insurance, and potentially HOA fees or PMI payments. You'll want to work with your lender to come up with a cost sheet that breaks down all the various expenses based on your home's location and your offer price.
- Decide On Contingencies
You have the ability and right to make your offer contingent on numerous inspections and factors. These contingencies allow you to back out of the deal without penalty based on the outcome of certain assessments or terms. The most common contingencies are a general home inspection, pest inspection, radon test, and sewer camera. However, if you want the seller to leave that nice game room pool table too, you can work that contingency into your offer as well.
Just remember, if you're competing with multiple offers, contingencies will decrease your chance of the seller accepting your bid.
- Have Your Realtor Draw-Up The Offer
If you're working with a good real estate agent, he or she is used to turning around offers fairly quickly. However, the sooner you let your agent know, the more time they'll have to react. Once your agent puts all of the terms on paper, you'll be required to sign the offer, and then it'll be shipped over to the seller's agent for consideration.
There is a lot to consider when making an offer on a home, but by reviewing your budget, getting pre-approved ahead of time, and selecting a good agent, you can help the process go as smoothly as possible. Contact us for more home-buying tips!