Before You Make an Offer
"Let's make an offer!"
If you are a buyer, those are some exciting words!
And you may have been waiting a while to say them. But before you shout them out, let’s take a moment to really think about it. House hunting brings out so many emotions; excitement, anxiety, indecisiveness, fear. Your mind might be spinning, and you might feel pressure to submit an offer, but before you do, here are a few things you should ask yourself.
Can I afford this house?
Make sure this home fits into your budget, and it’s not an uncomfortable squeeze. You may even want to practice having the “monthly payment” to make sure you are capable of making it. You definitely don’t want to have too high of a monthly payment, leaving little to none left over for the rest of your expenses.
There are two things to do to ensure you can afford the home:
Get pre-approved. Work with a lender and go through the pre approval process. The amount a lender pre approves you for, is an estimate of the size of a loan you can handle. This will also show estimated monthly payments of that loan amount. Contact us if you need guidance as to which lenders we have worked with and would recommend.
Practice making that payment. This is something lenders will highly advise. If time allows, you should put away that payment for a couple of months, keeping it totally inaccessible to you, to see if you can truly keep that payment. When you know you are capable of reserving those funds, you can take the next step with confidence.
Am I paying more for the home than it’s worth?
This home will be one of your biggest investments. You do not want to pay for a home that does not hold that value! To make sure you are getting what you are paying for, get an evaluation of the home and see what comparable homes in the area are valued at.
Where is it located?
You can change pretty much anything about a house, except for one thing: the location. Before you make an offer, take a drive from that home to your work, school, daycare, shopping center, and other places you frequent. Drive at different times of the day, peak hours, and make sure to drive to work at the time that you would, in fact, have to drive to work. You can change the color of the front door, but you won’t be able to do much about the hour drive home during rush hour.
How much work is needed?
Before making that offer, you will want to examine the current condition of the home. NEVER write an offer without making sure it is contingent on a professional home inspection. A home inspection will tell you everything thats wrong with the home, and what needs to be done or repaired. You can then get estimates for the necessary repairs, and use that to negotiate with the sellers.
What is your gut telling you?
Trust your gut! Do you feel “at home” in this house? Does everything FEEL right? Or are you hesitant and feel as if something is off? Your subconscious has a way of picking up on thoughts and emotions you might not even be aware are there.
If the price and location are right and you feel good about this home, it sounds like you might be ready to make an offer!
Make sure to work with an agent who you trust; their honesty and knowledgeable insight will help you make the best decision for you and your family!! If you need any advice, or are looking for someone to help you through the house hunting process, please call our office at (616) 791-1166.