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Making an
Offer
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Decide what you
are willing to offer
You want to be as
calm and objective as possible when you decide to make an offer
on a house, but finally locating a place that says "home" to you
is a pretty exciting and emotional experience.
It can be difficult
to put all that enthusiasm aside while you weigh the asking
price against what you think the seller might accept.
And, it can get
tricky. If the price you say you're prepared to pay is way too
low, you run the risk of irritating the seller, who might
respond indignantly by becoming completely inflexible. On the
other hand, you don't want to agree to a price that's higher
than it should be, either. Your mortgage lender is going to
conduct an independent appraisal of the property before any loan
is approved. If the contracted price is in excess of what the
appraiser says the property is worth, financing is going to be
tough to obtain.
Seek the Advise
of an Agent
Making your offer
is the stage at which your real estate agent's expertise is
going to be invaluable. An agent will be able to provide you
with comparative selling prices for similar properties in the
neighborhood.
An agent also may
be able to tell you how long the house has been on the market.
If it's a new listing, chances are there's less room to maneuver
than if the house has been on the market for six months or a
year.
You'll also want to
take into consideration the condition of the property. If major
repairs need to be made, this should be reflected in the price
you pay. Your agent can advise the seller that your offer
reflects these conditions.
Just remember, in
your negotiations, you can always go up, but you can't come
down. Because a little haggling over price is often necessary in
real estate, be prepared for counter-offers, and general
financial gamesmanship, and don't let it get to you. Remain
patient.
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