7 Steps to Buying a Home | Step 5: Make an Offer
Once you found the right home, you will want to write up an offer. This is where your emotions can really run high. The question you will ask yourself is; what do I offer? Should you offer less and risk getting a rejection, or do you make an offer that's a little bit higher, yet now you are overpaying? At this point, you need to take a deep breath and think to yourself, have I done my homework? Do I know what other homes in the area are selling for? Am I willing to pay a little bit over market because I love it?
Your agent will help guide you in making an informed offer on a price that reflects the true market value of the home you want to buy. Once you've decided on that price, you will also need to discuss the terms and contingencies of the offer.
The terms are things like:
The contingencies are your protection clauses that let you out of the deal should things not work out. The most common examples are the appraisal and home inspection contingencies. Once your offer is drafted up and is ready to be submitted to the agent representing the seller, three things will happen. One, the seller accepts the offer and you are now under contract. Two, the seller flat out rejects your offer. Or three, and most common, the seller counters back with different terms. Regardless of what happens, your Realtor will help guide you through this process until all parties can agree. Once you do get your offer accepted, you will be one step closer towards owning your new home!