The decision to buy a first home or the one of your dreams is a milestone event that will surely not be taken lightly. A little preparation is needed to make sure everything goes smoothly, but this will be worth it.
Here are our tips and tricks to make an offer to buy on the house of your dreams:
From the moment you found the house on which you want to bet, you have probably already toured the neighborhood and examined schools, shops, restaurants in the area. The next step requires further research on items that will help refine your offer. It is important to pay close attention to the local real estate market and to check how much similar properties have sold in the neighborhood. In addition, it is time for a real estate inspection with a building inspector to get a better idea of the condition of the property. Finally, consider the potential resale value of the property for future years.
You have a better chance of negotiating a better deal if you are better informed. Taking these things into consideration will save you many nightmares.
Although you’ve looked at the property yourself before, it’s important to hire a professional to do an inspection of the building before making an offer to purchase. A building inspector is trained to evaluate more than the cosmetic appearance of a property, and that is why they are indispensable. The inspectors verify that the construction and renovations were done safely, the condition of the roof as well as plumbing and electricity. Whether the defects are minor or major, you can rest assured that the inspector will find them. It is recommended that you or your agent be present during the inspection to supervise and be able to ask questions if necessary. Once the inspection is completed, the inspector will provide you with a report detailing the defects and defects in the property. This document will then be useful when negotiating the price with the seller, and it may even dissuade you from continuing the offer to buy if it raises too many major flaws.
Writing the first offer to purchase
When your decision is made, your agent will prepare a purchase offer stating your terms. This document will contain all the necessary information related to the purchase of the property; including price, financing terms, address and others. Although your agent will write the document, it is still important that you participate in it to make sure that it represents your intentions.
This stage of the process is possibly the most difficult because it requires a little patience. As soon as the offer of purchase is submitted, it will be the turn of the seller and his agent to contemplate and discuss the offer, then refuse or make a counter-offer. A counter-offer will emphasize a disagreement on the price or conditions. Prepare for several round trips before having an agreement.
Bargaining can be difficult, and it’s normal to feel pressured to make a decision that leaves something to be desired. Remember, this is potentially your next home and it’s important to make the right choices. Once the price and conditions are settled and accepted by both parties, it is time to finalize the sale.
Financing and Mortgage
Once the purchase offer is signed, you will need to meet with a bank or other lender to finalize the mortgage. This step can also be slow, but generally free of trouble especially if you have been pre-approved based on your financial status, income, and assets. Once your mortgage is finalized, you can finalize the purchase and take possession of your dream home.
Buying a home is an important event and a considerable financial investment that should not necessarily be painful or distressing. Research and good information will work in your favor and will help you avoid the most common impasses.