{"id":834,"date":"2021-03-17T08:59:57","date_gmt":"2021-03-17T14:59:57","guid":{"rendered":"https:\/\/agentstory.com\/a\/?p=834"},"modified":"2021-07-30T10:22:52","modified_gmt":"2021-07-30T16:22:52","slug":"top-8-things-to-consider-when-youre-making-an-offer-on-your-next-home","status":"publish","type":"post","link":"https:\/\/agentstory.com\/a\/top-8-things-to-consider-when-youre-making-an-offer-on-your-next-home\/","title":{"rendered":"Top 8 Things to Consider When You’re Making an Offer on Your Next Home"},"content":{"rendered":"\n

In The Art of War<\/em>, Sun Tzu wrote, <\/p>\n\n\n\n

\u201cThe general who wins the battle makes many calculations in his (or her) temple before the battle is fought. The general who loses makes but few calculations beforehand.\u201d<\/p>Sun Tzu<\/cite><\/blockquote>\n\n\n\n

When you\u2019re considering putting an offer down, there are many calculations to make throughout the process to improve your quality of life. Buying a home is tricky, and it\u2019s easy to get wrapped up in the excitement. You can avoid the noise and get the best living situation, for the best price, on the best terms if you conduct the following due diligence when making an offer on your next home.<\/p>\n\n\n\n

1. Thoroughly Research the Area<\/h2>\n\n\n\n

When it comes to making an offer, check out the area before you make your decision. You can get to know a neighborhood by driving around at different times of the day. Nobody wants to find out the traffic on the surrounding streets is brutal or that there\u2019s a noisy railroad crossing nearby.<\/p>\n\n\n\n

When deciding on a home, ask yourself, how far away is your job? Are you going to be able to see the same barber, gym, or other businesses you rely on for goods and services? What about schools? You can also find out the city\u2019s plans for the neighborhood, especially if there\u2019s ongoing construction. <\/p>\n\n\n\n

Buying a home is more than a physical property; it\u2019s about your current and future quality of life. Ensure the home you\u2019re making an offer on closely meets your needs.<\/p>\n\n\n\n

2. Speak With the Neighbors<\/h2>\n\n\n\n

Much of your neighborhood research can be discovered through neighborly conversation. If you\u2019re driving around (in a non-creepy way), try to strike up a casual conversation with another homeowner. You can ask about amenities, HOA, schools, and other pertinent information. Conversing with a local homeowner is the best way to find out if he or she enjoys where they live. <\/p>\n\n\n\n

3. Put the Home Through a Gauntlet of Inspections<\/h2>\n\n\n\n

There will be several professionals who inspect your future home, from its structural integrity to its perceived value. You\u2019ll do an initial walkthrough to make sure you like the home in person and not only the listing pictures. <\/p>\n\n\n\n

After you\u2019ve made an offer on a property, consider paying for a home inspection. The home inspection<\/a> is a visual check of electrical, plumbing, structural, and other areas of the home. These inspections are crucial to identify potential problems that could result in significant repairs or safety concerns. Since these inspections are visual, some homeowners will require additional examinations such as termite checks.<\/p>\n\n\n\n

After the inspection, your lender may require an appraisal. Many lenders require appraisals to guarantee their loans. After all, if homeowners default on their mortgage, the lender will need to recoup their investment. The appraiser will formulate an opinion of value based on your home’s condition versus comparable properties in the neighborhood. <\/p>\n\n\n\n

About 24-72 hours before closing, you\u2019ll conduct a final walkthrough<\/a> with your real estate agent. This final inspection ensures everything is maintained throughout the transaction and that any requested repairs were completed.<\/p>\n\n\n\n

4. Check Your Comps for Price Accuracy<\/h2>\n\n\n\n

Comparable properties are the driving force behind valuation in the real estate industry. Appraisers, agents, and homeowners use similar properties in their local neighborhoods as a benchmark for value. <\/p>\n\n\n\n

QUESTION:<\/strong><\/p>\n\n\n\n

So, what happens when one or more of these comparable properties doesn\u2019t have the correct price tag?<\/em><\/p>\n\n\n\n

ANSWER:<\/strong><\/p>\n\n\n\n

You can spend much more on a house than intended.<\/em> <\/p>\n\n\n\n

Your real estate agent can pull the comparable properties in the area and use them as a gauge to formulate your offer. Sometimes the seller\u2019s listing price isn\u2019t near fair market value (FMV), and if there aren\u2019t many homes in that specific neighborhood, you might not know otherwise. Checking five to seven comparable properties and underlining the home\u2019s unique features can give you leverage when you make an offer\u2014especially if the home has been on the market for a considerable amount of time.<\/p>\n\n\n\n

5. Review Utility Bills<\/h2>\n\n\n\n

Getting hit with a massive utility bill once you move in is the last thing you want as a new homebuyer. Take gas, water, electricity, HOA fees, and other services into account before you make an offer. <\/p>\n\n\n\n

The seller will occasionally have these documents prepared, but there\u2019s no harm in asking. It\u2019s vital to get 12 months of utility bills so you can compare the costs through seasons and calculate the average. Some states\u2019 utility companies will provide this information if you\u2019re concerned about asking the seller.<\/p>\n\n\n\n

Once you know the costs, tack them onto your monthly mortgage payment and ensure it fits your budget.<\/p>\n\n\n\n

6. Review the Seller Disclosures<\/h2>\n\n\n\n

Many states require sellers to disclose specific conditions, including housing hazards, property damage, toxic smells, and even death in the home. In certain circumstances, you\u2019ll be able to justify asking for credits due to current or future problems that need attention. Consult with your agent if you have any questions or concerns about the home\u2019s current condition.<\/p>\n\n\n\n

Reviewing the seller disclosures and understanding the potential costs and problems is imperative before you purchase a home. <\/p>\n\n\n\n

7. Be Comfortable With Your Financing<\/h2>\n\n\n\n

When it comes to financing your home, there are a few essential steps you\u2019ll want to take:<\/p>\n\n\n\n

1. Know your monthly budget threshold<\/a> and stick to it.<\/p>\n\n\n\n

2. Get a preapproval and determine how much you want to use\u2014you don\u2019t have to borrow more than you need!<\/p>\n\n\n\n

3. Don\u2019t engage in purchases or activities that will result in hard inquiries during the homebuying process.<\/p>\n\n\n\n

4. Verify that you have direct access to your funds for your earnest deposit, down payment, and closing costs.<\/p>\n\n\n\n

These steps are essential when you want to stay financially healthy throughout the homebuying process. Sellers will appreciate the transparency, and your real estate agent will be able to push the deal through faster if there are no financial snags. <\/p>\n\n\n\n

8. Making the Offer<\/h2>\n\n\n\n

Once you\u2019ve thoroughly vetted the home, the surrounding area, and your financial situation, it\u2019s time to make an offer. Determining the offer amount requires a bit of tact. <\/p>\n\n\n\n

Best practices include:<\/p>\n\n\n\n