Avoid getting caught up in the heat of the moment. You’re making a contract to purchase a home, which will legally bind you if the seller accepts. You also will submit a deposit with your offer, which is only refundable under certain conditions.
Do Your Research
Find out about:
- Current market conditions. The more demand there is for housing, the more you can expect to pay.
- Prices of comparable homes sold in the area recently. The range varies, so get up-to-date figures.
- Current value of the home. Work with your agent to get a list of recent sales of similar properties in the neighborhood.
- The seller’s motivation. In cases such as divorce or relocation, the seller may settle for a lower price in exchange for a quicker sale. Questions to Ask the Seller.
Prepare Your Offer
- Always make an offer within your ability to pay.
- To strengthen your offer, include a letter of pre-approval from a lender.
- Attach standard contingencies, or conditions, to your offer.
- You usually have to include a deposit with your offer, to be applied to the down payment if the deal goes through.
