Back HomeHow to make the best offer for your dream home
Did you finally find your dream home? Are you getting ready to make a solid offer? Like in any other state, making the best offer possible to a home seller is an integral part of the process of buying a house in Texas.
However, you may wonder what exactly makes an offer “the best.” Check out some valuable tips that will help you deliver a winning offer that will get you your dream home.
Secure Your Pre-Approval
One of the secrets behind an offer that looks appealing to home sellers is a pre-approval. This is the approval coming from a lender signifying that you can borrow a specific amount of money for a mortgage.
In the eyes of home sellers, a mortgage pre-approval is something very promising. It becomes more valuable if you’re looking to buy a house in a tight market where the best homes tend to get multiple offers.
In turn, home sellers will look at the most attractive offers that will give them the least hassle and complications. By securing a mortgage pre-approval, you are sending the message that you have no problems when it comes to financing the purchase.
As a result, sellers will become more comfortable dealing with you. You get the upper hand over other offers that have no pre-approval letters to show for.
When it comes to securing a pre-approval, you need to work on your debt-to-income ratio. You also have to revisit your credit standing and work on improving it if necessary.
Determine Your Price
Another important tip for making the best offer is to determine your price. To do so, you must first know your limits. Though you may have an agent who can help you come up with the best price offer, nobody knows your financial limits better than you do.
You therefore need to be transparent with your agent when setting the price. If you’re also saving up for other essentials like a retirement fund, you need to create a top limit offer price.
Also, your agent will run comparisons with other houses similar to the one you’re eyeing. They will compare the homes’ listing prices to gauge how much a fair price offer is. Your goal is to offer the best price without going over your limit.
Go Deep Into the Fine Print
Buying a house in Texas also requires due diligence. On top of inspecting the house from all angles, you need to go deep into the details of the sales contract before finalizing your offer.
A sales contract should come with all the relevant information about the house. These include the complete address, the types of existing utilities, and the tax ID. Moreover, it should indicate all the fixtures and other elements that will come with the purchase.
Knowing about these things gives you more room to negotiate down the line. It will also give you an idea of what to improve or remove in case the seller agrees to your offer.
Earnest Money Counts
Aside from firing a lucrative offer, take things to the next level by assuring the seller that you’re serious about getting their house. Thus, don’t hesitate to add an earnest money deposit to your offer.
A standard amount for an earnest money deposit is anywhere between 1% and 3% of the property’s sales price. If you applied for a $300,000 loan, your earnest deposit should be $3,000 to $9,000.
However, keep in mind that you will likely not be able to get back the deposit if you decide to back out.
Contingencies Matter
You also need to review the contingency plan for the house. These pertain to the certain provisions that both parties need to agree on and meet for the sale to push through. Usually, if the contingencies are not met, the homebuyer can back out of the deal with their earnest money deposit intact.
Contingencies mean bumps and roadblocks that may derail your purchase. What you want as a buyer is to limit your contingencies the best way you can. One of the most common types of contingency plans involves repairs.
For example, the contract may come with a contingency that it is subject to home inspection. In turn, you, the buyer, will have a specific number of days to hire a property home inspector to inspect the house after you accept the offer.
If the inspector sees that there is a major issue with the property, you can request the seller to shoulder the repairs first. Alternatively, you can ask the seller to reduce the home’s selling price.
Master the Art of Negotiation
Last but not least, you need to learn how to negotiate effectively. One of the keys to effective negotiation is to make a connection with the seller. This is crucial if you want to make life easier for them.
Begin by finding more about his current situation. Why are they selling the property in the first place? Have they acquired a new home? If so, you need to offer a settlement date the soonest.
By following these tips, you can come up with an offer that will stand out from the rest. If you’re considering buying a house in Texas, Berkshire Hathaway HomeServices (BHHS) Caliber Realty can guide you every step of the way.
Call us today at 979.694.8844 and connect with our team. You may also send an email at susiet(at)bhhscaliber(dotted)com for any inquiries you may have.
