5 Steps for Making an Offer on a Home

You’ve done the legwork, now it’s time to make an offer on a home. Whether this is your first or fifth home you’re purchasing, it never hurts to brush up on how to make an offer that’s not only accurate, but it’s also attractive to the seller.

Here are five steps for making an offer on a home.

1. Research

When you’re looking to make an offer on a home, the process begins with researching the local market and the history of the home. First, you should find comps, or local home comparables that are similar to the one you’re interested in, to see how the home's selling price compares. Next, you should research the home’s history. For instance, a seller who purchased the home decades ago will be more open to negotiation on the price versus a seller who has only lived there for three years. Seek the help of your trusted real estate agent for this step.

2. Get pre-approved for a mortgage

Chances are you’ll need some assistance to pay for your home. By taking the step to get pre-approved for a mortgage with a lender ahead of time, sellers see this initiative as assurance that you’d be able to afford the home and will often take you more seriously than buyers who do not.

3. Hire professional help

Hiring a real estate agent and real estate attorney can save you from a lot of headaches as you navigate through heaps of paperwork and unfamiliar terminology. Their assistance will be invaluable, especially when it comes to the purchase agreement, home appraisal, inspection and other steps during the homebuying process.

4. Protect your money in an escrow account

Having an escrow account is a great safety net for protecting your money should the offer fall through. You can arrange to have your deposit kept in an escrow account, instead of with the seller, which will also be deducted from the final amount when it’s closing time.

5. Make your offer

Once you make your offer to the seller or their real estate agent, there’s a small window of time for them to accept the offer, reject it or place a counteroffer for you to consider. Then, you can accept their counteroffer or place a new one. Once you and the seller come to an agreement on the price, now’s the time where you can consult your real estate attorney to help you understand what you are signing.