Three Questions About Making An Offer On A Single-Family Home
Have you been searching for a home for quite some time and finally found one that you love? You're going to want to move quickly to make an offer on it and potentially buy it. Here are some questions you likely have about making an offer on a home if you've never done it before.
Do You Need A Real Estate Agent To Make An Offer?
While a real estate agent is not necessary to purchase a home, it is highly recommended that you work with one. There are mistakes that can be made in the home buying process that can be easily avoided by using a real estate agent, especially when making an offer. You want to have language in your offer letter that gives you potentially ways to back out of the sale later. For example, having an inspection that comes back with information about the house being in bad condition or an appraisal that is far lower than the price of the home will affect your decision.
Do You Have To Make An Offer At List Price?
One of the unique things about buying a home is that the list price is often a suggestion. Many buyers offer less than the list price when the market favors the buyer and list a price that is higher when the market is competitive and favors the seller. Your real estate agent can guide you about which direction to take when making an offer on a home.
However, there are some unique approaches to making an offer on a home that do not even list a firm price. Your real estate agent can teach you about using an escalation clause, which says you are willing to pay a specific amount of money more than the highest offer. It's a risky move, but it could guarantee that you get the home with multiple people making offers.
What Happens If The Offer Is Rejected?
If there are multiple offers involved, it is possible that the seller rejects your offer and accepts another one. If there are no other offers, they will likely reject your offer and offer a counteroffer of their own. They may come back at list price or land somewhere between list price and what you offered. You can accept or make a counteroffer of your own. This back and forth will continue until either side decides to stop negotiating on the price of the home by making a final offer.
To learn more about single-family homes for sale, contact a real estate agent in your area.