Thinking Of Making An Offer On A Home? What You Should Do First

In a competitive housing market, time is not always on your side. In fact, if you move too slow to put in an offer on a home, you could lose out on the property of your dreams. Procrastination is not exactly the way to go, but it is also important not to move too fast. There are certain steps you need to take before you even attempt to put in an offer on a home.

Speak with the Lender

Do not even entertain the idea of putting in an offer on a home until you speak with the lender. First, sellers generally require a qualification letter from a lender before accepting an offer. However, second, even if this documentation is not required, without a conversation with the lender, you will not even know if you can actually afford the home. Talk to a lender so that you know what you qualify for and afford.

Research Comps in the Area

Ask your real estate agent to run comps in the area before you put in an offer. The amount you provide in the offer letter is biding, and it is the figure that the sale contract of the home will likely be based on. For this reason, you do not want to offer more than the home is worth. An agent can run comps to determine what amount you should fairly, yet competitively, offer for the purchase of the home. 

Have a Game Plan

You should never submit an offer until you have a game plan. This step is especially important if you are buying a home with your spouse or another person. Your game plan should include a discussion about the most you are willing to pay for the home, as the seller could provide a counteroffer in response to your offer. To avoid any delays, discuss this topic beforehand so that you can provide a prompt response in the event of this sort of scenario. 

Outline all the Details

Take some time to go over all the details you want to include in the offer, as you can include much more than just the sell price of the home. For example, if you want the seller to perform certain upgrades, such as a new HVAC system install, you want to include these details in the initial offer letter. Strategize and outline your offer before you submit it.

It is always best to partner with an agent to determine how swiftly you should move towards putting in an offer on your home. Speak with an agent to ensure you are on the right track when you're looking for homes for sale.