A Strategy for First-Time Homebuyers
Putting an offer in on a home can be stressful, especially when it is your first time. You most likely have been searching the internet and going to look at homes for a long time and now you are ready to put in that offer. Before you do, review these first-time homebuyers steps so you know you are making a solid offer.
Know What the Sellers are Thinking
Understanding where the sellers are coming from can be very helpful in making a solid offer. You should know how long the home has been on the market and how motivated the sellers are to sell their home. It can also be beneficial to know what timeline the sellers are hoping to follow to see if you could maintain it. Also, ask your agent if there are any other offers in on the home.
Look Over the Comps
Before making an offer make sure you review the comps for homes sold in the area. You can look as far back as six month but try to stick to three months. A sale pending is the best comp to use because it is the most up-to-date information that there is for the area. This information can be very helpful to have and present to the seller when making your offer.
Speak to Your Lender First
This is a great time to talk with your lender again about a mortgage. They will be able to give you an up-to-date pre-approval letter. They will also be able to let you know about new mortgage rates and products that are available. Things may have changed for you financially while you were looking for a home. You may actually qualify for a better product because during the search time you saved money.
Have the Right Contingencies
You want to make sure that your home has appropriate contingencies. However, some sellers may be turned off from your offer if there are too many. It is understandable to have the sale based on the inspection, appraisal, or needing to close at a certain time. It is important to remember though that a seller can turn down these contingencies, so make sure you try to work with them when you can.
Making an offer can be stressful if you are not prepared. In order to ensure that you make a smart offer follow the above first-time homebuyers steps. Remember: even if you don’t get the home there will be other homes that will come available with time.