-Home Purchase Guide
a Fast Purchase
-Buy, Don't Rent!
-Spouse Have Bad Credit?
of Credit Card Debit
-Student Home Loans
-Fair Market Value
-Buyer's Market or Seller's?
-Making an Offer
No Money Down
Buying a Vacation Home
Home Equity Loans
MAKING AN OFFER
Are you ready to put an offer in on a house? Are you
asking yourself, 'How much should my bid be?'. A good rule
of thumb is to set your asking price 10% below your
fair market value estimate, not the seller's asking
price. Why? For a couple of reasons. First off, sellers
will often involve their emotional ties into the asking
price of their house. So, a bid of 10% less of the asking
price may be too high of an offer. Also, the selling price
asked by sellers is sometimes intended to be very high,
with the seller hoping to get as much as they can for
their property. But, the majority of the time, the seller
will boost their asking price up higher than what they
expect to get for the house because they want to leave
room open for negotiation.
Prior to making an offer, in addition to calculating the
fair market value of a house, it is a good idea to
determine if the area you are looking to buy in is a
seller's market, or a buyer's market. Knowing this
will allow you to adjust you offer accordingly.
What is the procedure of making an offer.
Obviously you must make sure that the property you are
interested is really what you want. Visit the residence
several times. Drive around the community. If you have
kids, research the school system. A good idea would be to
ask questions to the seller and real estate agent before
making an offer.
Person-to-Person - When making an
offer on house that is being sold by a private seller, and
no real estate agent is involved in the transaction, you
must present a written proposal that includes your bid,
time you would like to close, and proof of financing. You
should also insist on leaving a deposit. This
will show that you mean business, increasing the chances
that your offer will be accepted.
Real Estate Agents - An offer must be
presented in writing when there is a real estate agent
involved in the sale of a house. Typically, when an agent
hears the word 'offer', they will whip out a piece of
paper. This paper will have the details (price, location,
size, etc.) of the property you are interested in. They
will ask you to sign and date the paper and include your
proposed bid. You will also be asked to leave a deposit of
$500 - $1000. Normally, this paperwork will be presented
to the seller's attorney within five days of you signing
it. This will give you time to show it to your lawyer
and/or change your mind about the property. However, if
you do decide that you do not want to make the purchase,
you will likely lose the money that you left as the
fees associated with mortgages as well
private mortgage insurance is will help you make an
offer that you can afford.
Evaluating the Costs of Homeownership
Understanding the Housing Market
Calculating Mortgage Payments
Determining if Your Salary is Enough for the Loan You Want