The first step to buying a Logan UT home is to write an offer. It’s a scary thought to write an offer on a home, especially in a down economy, but many people are still buying homes and getting great deals. Here are some steps you can take to make your offer more powerful on a Logan home:
Gather Pricing Data
Nobody wants to overpay on a home, especially in a strong buyer’s market like we’re in today. You need to get information on market activity and what similar homes are selling for over the last three months.
This information can be obtained from any competent real estate agent, and if you aren’t working with an agent, you can check out sites like Trulia or Zillow. However, be wary of the data gathered from those sites, they are usually way off since they don’t have access to the MLS.
You’ll also want to talk to the seller or seller’s agent to get some more information. Knowing how long the homes been on the market and what terms the seller is looking for will help you write a stronger offer. If the seller sounds desperate and has been on the market for a long period of time, you can usually get a better deal.
Ask Your Agent What You Should Offer
For those working with a real estate agent, use their advice. They should know the market and give you a price point to start at. Of course, your real estate agent provides the advice, but you ultimately make the decision.
Using a real estate agent as a buyer can save you from getting sued, will get you a better price, and their services are paid for by the seller. If you’re not using an agent to buy a home, know that their are many legal issues that can arise from a real estate transaction. You should at least use the services of an attorney to save your butt from a lawsuit later on.
Get A Pre-Qualification Letter Or A Bank Statement If You’re Paying Cash
A seller won’t take your offer seriously if you don’t have proof you can purchase the home. A pre-qualification letter from a lender lets the home owner know you’re serious about purchasing the property. In order to get a pre-qual, a lender will have to run a preliminary credit report.
If you’re one of the few with the cash to buy a home, submitting a proof of funds sheet should suffice. Just print off a recent bank statement showing the cash in your account. Using cash to buy a home gives you a little extra bargaining power if you can close faster, so keep that in mind when writing an offer on your Logan UT home.
Remember Your Contingencies
As a home buyer, you have a few contingencies that will allow you to walk away from the deal. In the Utah real estate purchase contract we use, the standard contingencies are an appraisal, an inspection, and a financing contingency. If the home doesn’t appraise at your offer price, you don’t have to buy it; although most sellers now a days will lower their price to conform to the appraisal.
When buying a home, you should always get a home inspection, even on a new home. Home builders make mistakes, and older homes, a lot of times, have something lurking under the skin. If your inspection shows problems with the home, you can walk away, request the seller to fix the issue, or reduce your offer price to suit the repair costs.
Obtaining financing today is a beast of it’s own. A financing contingency allows you to walk away if something happens during the loan approval process. You can’t buy a home if you can’t get the money, this is an obvious inclusion in any contract.
Earnest Money
An earnest money deposit is a security deposit for the seller to take their home off the market while you go through your due diligence period. If your offer is accepted, the seller’s agent will deposit your money in a trust account.
It will be held until you close on the home and put towards the purchase price when you close. You will lose your earnest money only if you lapse on your due diligence period and still want to get out of the contract.
It’s pretty difficult to lose your earnest money as a home buyer. As long as you stay on top of your contract dates, you should be fine.
Sumbit Your Offer
Writing an offer can be a scary ordeal, and I would recommend you sleep on it before you submit. With every client of mine, before we submit the offer, I tell them to sleep on it. If they still want to submit the offer the next day, I give it to the seller’s agent. Of course, some of my clients are ready to go and I submit it right away.
Once you feel comfortable with the market statistics, you have your financing ready, and you’re dates are set. Submit your offer with your earnest money check, your pre-qualification letter, and head into the negotiations. Best of luck on your home purchase!
{ 3 comments… read them below or add one }
Excellent advice Lisa! I would emphasize picking a good Realtor to work with. We both know Real Estate agents are dime a dozen and having a good one in your corner can make a big difference!
BTW – You should change your tags to “do follow” for SEO:)
Bill Gassett´s last blog ..Buying a Massachusetts Foreclosure Property
Bill,
If a home buyer isn’t using a good Realtor, they will know it by the time the complexities of closing a deal arise that they made a mistake. We can only say it so many times before we get blue in the face…
Thanks for the SEO tip!
Now, how do I do it? lol
In today’s tight money market specifying a financing approval contingency is more important than ever. A lways make your offer contingent on being able to obtain financing.
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