6 Tips for Making an Offer on a Real Estate Purchase

If you have made it to the offer stage of a real estate purchase, you are probably breathing a sigh of relief. You have decided which property is best for you after weeks or months of searching. You are starting to imagine yourself living or working there. You are ready to complete the purchase, and the first step of that process is making the offer.

Unfortunately, making the offer is not something that is simple. You should not jump into it blind. With a little bit of help, however, we think you can make an informed start to your transaction. Here are our 6 tips for making an offer on a real estate purchase:

Set Your Limits Up Front. Before you even write the offer, know your limits on the transaction. What is the absolute top of your budget? Make sure to set your initial offer below that. What elements of the sale are you willing to compromise on, such as what appliances are included? What is absolutely essential, such as your move-in date? Setting your priorities upfront will mean you are prepared to compromise where you can and stand firm where you cannot.

Get Your Mortgage Pre-Approved. This is essential. The best way to show a seller that you are serious about making the purchase is to include a letter showing you are pre-approved for a mortgage loan. This shows the seller that you are financially responsible and prepared for the home-buying process. It is not uncommon for buyers with a lower offer and a pre-approval to be chosen over those lacking one but maintaining a higher offer.

Get a Move On! A good sign of a successful buyer is setting realistic and positive deadlines. Setting them too soon will seem suspicious or like you don’t understand how the process works. Setting them too far in the future will lose a sense of urgency and seem like you are not serious about making the purchase. A thirty to sixty-day settlement period is a good rule of thumb but work with your agent and attorney to determine the best one for your situation.

Make the Correct Deposit. Another way to show you are serious about the offer is to make a significant deposit alongside it. There is no calculation for what is best, but if you are offering a $1,000 deposit on a $500,000 property, don’t expect to be taken seriously. Much like your mortgage pre-approval, your deposit should indicate that you are invested in buying this property and you are financially capable of making that decision.

Prepare For Negotiations. Remember that your initial offer will not just be accepted on sight. There will be some negotiations as you determine what is best for everyone. This is where the first tip comes into play: if you know what is most important to you, you know what else you can negotiate with. This is also why you should never make your initial offer your absolute budget limit because then you could never agree to a counter-offer.

Work With an Attorney! When you are in the transaction stage of the real estate process, you want the help of not just an agent but also an attorney. They will advocate for you and make certain that your offer is legally sound and impressively strong. Contact Velazquez Consumer Law, LLC for all your help with real estate legal needs. We provide solutions and shield you from surprises!

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Velazquez Consumer Law

Central to our firm is the empathetic and compassionate service we give each client that allows us to fully understand your situation and goals. Above all, our responsive and hands-on approach to your legal issues yields actual results.

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