Americans are constantly moving and resettling and the final motivation is to find a home one can call their own. There are over 1 million housing units in the country and 65% of these are the primary homes of the people who live in there. Clearly, we are obsessed with the idea of owning homes, and that is a good thing. When you are a first time home buyer, you are always looking for breaks that can help you grab your first home with ease. You surf the internet looking for tips and you ask around. The big fear is that you may make the wrong move and torpedo your chances of settling.
In this piece, we look at some key considerations first timers need to factor in before going all out to make an offer for that dream house.
Have confidence when negotiating or making an offer
It is normal to feel out of depth when fixing to make an offer. However, you need to understand that you are like any other buyer. You have glossed over prices, pored over publications and talked to a very helpful real estate agent. You may not know it but at this point, you are a guru in the whole house buying business. There are no right and wrong prices. There is only logic, and by understanding that, you can make solid offers with little reluctance.
Look at price comparisons before you pull the trigger on the deal
Your agent is going to be very handy at this point. See, these professionals usually have lots of data upon which you can base an offer. The normal practice is to afford you a list of the deals that have taken place in your area of interest over the last 6 months. Pay special attention to the pending sales and ask your agent to find more information regarding the seller involved.
Keep digging for information
You need to understand where the seller is coming from with their pricing. For example, for how long has the house they are selling been on the market? Is it possible to glean some information on why they are selling? You also need to know if there are other buyers and what they are offering for the same house you have an eye on. The statistics your agent comes across will be instrumental in determining the offer you table.
Keep your lender in the loop
You will need your lender every step of the way. At some point, you are going to require a pre-approval letter and when you do, the lender needs to be ready. In addition to that, there is the question of mortgage rates, which are very volatile. Lenders are very good when it comes to sniffing out incentives in the market and are going to keep you updated on any shifts in prices and rates.
Remember to discuss the terms of sale
Admittedly, the price is the most important factor here. But you do not want to forget the nitty gritty. For example, what is the timeline for inspections? When these drag out, snags are going to arise and prevent an early close to the sale. Some people want to close fast and others want to wait for some time due to complications related to approvals and mortgages. At times, you are going to require time for loan contingencies and approvals.
Do not stick to your guns for no apparent reason. For example, if the seller wants to close within weeks and you can get it done without glitches on your side, then why not go for it? Remember, you are likely competing with other buyers, and they are looking to take advantage of any reluctance.
There are going to be other houses of the same pedigree as the one you have fallen in love for. You do not have to go all out for a deal where the terms are skewed towards the seller. People are going to want to sell houses every other day. Thousands of Americans relocate every day, opening up positions for you to take advantage of.
Buying a house can be a hectic process, even an intimidating one, but with the right information and a good real estate agent, you are going to get value for your money.