Tips for Making an Offer for First-Time Capital Region Homebuyers
As first-time Capital Region homebuyers, you’ve finally found it: your dream home. It has everything you could ever want and need, and it’s in the perfect location. Now that you’ve found your home, it’s time to make an offer to the seller. But what number should you give the seller? Should you try to come under the asking price? Are you sure the house is worth the asking price?
If you’re first-time Capital Region homebuyers, check out these tips for making an offer on your first home.
Be Confident in your Research
Before you even start looking at Capital Region properties, you should have done some research on the market and neighborhood you want to buy into. Knowing how the Capital Region market functions (is it a fast-paced or competitive market?) will help you make a fair offer and know when an offer is a bad one.
You should also take into account your experiences with open houses and other homes you’ve had the opportunity to tour. You may have seen why some owners ask for certain prices based on what’s in their home, such as extra bathrooms and upgraded kitchens. This will help you determine a fair price for items that don’t usually have a price.
You’ve done all the research so far, so don’t sell yourself short when making a deal. Trust the research you’ve done to make a fair offer.
Go Back Over Comps
When you first started searching for a Capital Region home, your agent probably sent you comps for the neighborhood you’re looking to buy into. By comparing the sales of similar homes, you’ll get an idea for how much homes go for in your neighborhood and what would be a fair or laughable price to offer.
Always look at comps, or comparable sales, from the last three months just before making an offer. It’ll help you keep those numbers fresh in your mind. If the seller counters with a higher price, then you’ll know when you’re paying too much for a house that isn’t worth it.
Research the Listing
A home’s online listing and public records can tell you a lot about the property that the owners might not even think to mention. The listing will tell you how long the house has been sitting on the market and whether or not other offers have been made.
Public records will tell you the last time the property was sold and any permits that have been filed with the city. For example, if records show the home has three bedrooms but it is listed as having four, then there’s a chance the current owners did some construction without a permit. That may be okay, but you don’t know whether they did a good job or not. You should take these factors into account when settling on a price.
Outline Terms
One thing that first-time Capital Region homebuyers should demand is knowing everything up front. It will be up to you to set up time limits for inspections as well as closing times. If you need a loan or appraisal contingency, then your seller needs to know, especially if it will take a while.
These extra factors can sweeten a deal if buyers aren’t too thrilled with your price. If they’re in a hurry to sell, a closing date in the near future may be worth more than a few extra thousand dollars. If you can’t meet the asking price, consider throwing in a few of these benefits to convince the seller that you’re serious.
Tell Your Lender
You’ll need both a pre-approved letter from your lender as well as the most up-to-date mortgage rates in order to make an offer. If you’re not in contact with your lender, then it will be harder to get these documents.
As first-time Capital Region homebuyers, keep in close contact with your lender, especially if you’re ready to make an offer any day now. You’ll need information fast, and your lender can help you out when it comes time to send in an offer.
Remember, even if you miss out on one home, there will be others. Not every first offer is accepted, but if you keep up with your research, you’ll be sure to get a fair price for the house you want.