You’ve stalked internet listings, prowled through open houses, and now, finally, you’ve found The One. But don’t breathe that sigh of relief yet! Now, more than ever, you need to be on top of your game. Making an offer on a home is a delicate business. To be successful St. Louis homebuyers, do your homework, analyze your gut feelings, and use our guide to making a successful offer on your dream home:
If you’re ready to make an offer on a home, chances are that you’ve already visited it and obtained the prerequisite “warm-and-fuzzies.” What you may not have done is dig into the property and seller’s backgrounds.
Before you make an offer, you need to know how long the home has been on the market and what the seller’s motivation for selling is. If you find that the home has been lingering on the market for 8 months, while the seller is approaching the start date of a new job in a different city, a lowball offer might work.
Comparable sales are recently sold homes in a similar St. Louis area and similar style to the home you want. You can use comparable sales to get a ballpark estimation of the value of your dream home.
Still, compare with caution. Small differences, like a home on a cul-de-sac vs. a home at a four-way stop, can have a big impact on home value. The more comps you study, the more accurate the average you will have. Don’t rely on just one comp to make your offer!
Even if you already have a letter of pre-approval and know the price you can afford to pay for a home, you should touch base with your lender when you find a home you’re interested in. Mortgage rates and promotions change daily. You may be able to afford more than you know!
When you make an offer on a home, you are agreeing to more than just a financial transaction.
If you feel uneasy about that whiny water heater in your dream home, you might want to request a contingency for the replacement of the heater.
If your in-laws have been putting you up for the past six months, and you want to get out of there as fast as possible, you should request a timeline of inspections and closing negotiations.
If there’s any period in your life when you don’t want to appear spineless, this is it. Be confident in the offer you are making. After all, you’ve done your homework. You know the value of the home to you, and you know what you can afford to spend.
If you think you might need some back up, talk to your real estate agent. They can bolster your confidence with professional insight.
No matter how in love you are with a home and how reasonable your offer is, you may be rejected. If you receive a negative on an offer, try to coax the seller to meet you in the middle. Failing that, remember that there are many other homes on the market. You know the game now, and as frustrating as it may feel to go back to square one, there will be other homes.
As St. Louis homebuyers, making an offer on a home can be both daunting and exhilarating. Do your best to keep your head clear and your chin up. As soon as your offer is accepted, you will be on your way into a new home!