How To Make an Offer on Your First Home

Buying your First Home depends on negotiating a satisfactory Purchase & Sales Contract with the seller, not just making an offer.

How to Determine Your Initial Offer
Unless you have a Buyer’s Agent, which we strongly recommend, keep in mind that the Dual Agent gets paid by the seller. Make a point of asking this agent to keep your discussions and information confidential.

If you have a Buyer’s Agent, listen to your REALTOR’s advice, but follow your own instincts on deciding a fair price. Calculating your offer should involve several factors
♦  How much of a mortgage have you been Pre-Approved for
♦  What similar homes sell for in the area    Get Pre-Approved
♦  The home’s condition,
♦  How long it’s been on the market,
♦  Financing terms
♦  The seller’s situation.

By the time you’re ready to make an offer, you should have a good idea of what the home is worth and what you can afford. And, be prepared for give-and-take negotiation, which is very common when buying a home. The buyer and seller may often go back and forth several times before they can agree on a price.

Making an Offer
Your REALTOR will assist you in making an offer and in preparing the Purchase & Sales contract 3Contract which will include the following information:
♦  Complete legal description of the property
♦  Price you are offering
♦  Amount of earnest money deposit
♦  Down payment and financing details
♦  Home Inspection Contingencies
♦  Mortgage Contingency Date
♦  Proposed Closing date
♦  Length of time the offer is valid
♦  Attorney review of the contract
♦  Other details of the deal

The Purchase and Sale Contract is a legal document. In addition to the agreed upon price, it stipulates as specific timeline as to what you and the seller must do to complete the sale. It would be prudent to have your attorney review this contract to ensure that your interests are well protected and to be prepared to assist you with any glitches that may occur during the whole process.

Similar Stories:        http://www.richmond.com/realestate/resources/article_43dc062c-abad-11e4-9d9b-4f6d478b87bc.html

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