What To Know Before Making an Offer on a Home


The Starting Point When Making an Offer

The first thing to consider before making an offer is to have your Realtor prepare a CMA (comparative market analysis). After all, you will be making one of the biggest purchases of your lifetime, so it’s imperative that you know what the correct value is to make the best offer you can.

Remember, an offer is just a starting point that will lead to a binding purchase contract. However, until both buyer and seller have agreed to all the terms, including a final price, both parties have an opportunity to abandon of the deal.

Besides the market value, it’s best to learn as much as you can about the property before you submit the written offer. Your Realtor can answer most of your questions, however some concerns you may need to scope out on your own - through your due diligence. Having a home inspection can provide answers about the structure of a home. This may help determine whether you’re ready to make that next step of signing an offer.

Forming an Opinion

The process of choosing your dream home starts with knowing your financial limitations and seeking out a house in your budget. It’s also a good idea to have a well-defined list of “must haves” and “absolutely nots” criteria that will impact your decision.

What About the Price?

The asking price is going to be a major part of your decision-making process. The overall market conditions and the amount of time a house is on the market could point to a problem that the seller is ready to make a deal.

•  Is the asking price reasonable?
•  What are the prices of comparable properties?
•  How long has the property been on the market?
•  How long has it been on the market?

Condition of the Property

•  Does the price properly reflect the property’s condition?
•  Are you willing to make any needed repairs that may be needed?
•  Does the property appear clean, neat and well-kept?
•  Are the floor plan, size and features appropriate for your needs?
•  View the home at different times of day if you have a chance.

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Know the Details

Learn as many details about the home and it's condition as possible.

•  Learn about the heating, cooling, plumbing and electrical systems.
•  Find out if the roof been repaired or the appliances replaced, and if so, when?
•  Will any current warranties transfer to you?
•  Has a home inspection been completed and can you gain access to it?

Assess the Area

Research the area. Drive around the neighborhood and ask yourself if you get a positive feeling about the quality of life in the area.

•  Are there parks and recreational areas?
•  How is the condition of the streets and local facilities?
•  Is the age of the area apparent?
•  What are your neighborhood 1st impressions?

Location, Amenities, Infrastructure

Visit City Hall, County Offices and the Chamber of Commerce. They can provide valuable insight about your new potential neighborhood.

•  Is public transportation available?
•  How about the local traffic?
•  Are you near major freeways?
•  Are there convenient stores nearby?
•  How about additional shopping?
•  Are medical facilities accessible?
•  Are there any Planned Developments or Zoning Changes expected?
•  Are the taxes reasonable?

Writing an offer is an exciting step in the home buying process. But, it is the information you gained during the “getting to know you” phase that will remain with you long after you become a homeowner. Contact me to start your home search today!