Real Estate Buys And How To Make The Offer
While much of the consumer marketplace relies on fixed prices, some things are still negotiable. It's interesting that two of the largest purchases buyers ever make, cars and houses, both come with the opportunity to negotiate for a better deal. If you are in the market for a home, understanding what goes into the price you offer is vital. Read on to learn more about how to make an offer that results in an affordable home you love.
What Are You Willing to Pay?
Only those with unlimited wealth can afford to recklessly throw offers around. Some research and work are needed prior to the big day when you place your first offer on a home. For many years, a real estate myth has assured buyers that they can usually afford to spend about 2.5 times their yearly income on a home. Unfortunately, that method fails to take into account your other financial obligations. Some people can afford to spend three times their income and some should stick to twice their income. Before you even start perusing the internet for homes, it's best to know what you can afford based on your income and budget. The best way to be certain of that number is to contact a lender and get preapproved for a home loan. The range provided to you can then propel your searches only to appropriate properties.
What is the Market Experts Telling You?
Each and every buyer has their very own real estate market specialist on call – their real estate agent. Speak with an agent to find out about the market because its temperature influences not only the price you'll pay but how fast you'll to make decisions and contingency clauses in the contract. Hot markets can feel hectic and you will need to make quick decisions, form uncomplicated purchase agreements, and have financing lined-up. Cooler markets can signal time to negotiate and puts the pressure on sellers to accommodate buyers.
What is Driving the Seller?
If you live in a small town, it might be easy to know that the seller of a particular home has just accepted a job in another city and is rushed to sell. Any information you know about the reason for the sale of the home can play a part in the sale. Many sellers are under a time constraint when dealing with divorce, job losses, moves, a death in the family, and more. Look to your real estate agent to provide some background on the seller's reasons for selling and take advantage of homes fresh on the market.
Speak to your real estate agent about making an appropriate and winning offer on the home of your dreams.