You may not have a real estate agent because you want to buy a house. You didn’t plan to buy a house, so suddenly you found a house you wanted to offer, or you might have been working in real estate, but there’s a reason you might buy a house without an agent. So when it’s time to make an offer, you need to know the steps.
This Redfin article highlights the steps to make an offer without an agent. If you want to buy a home in San Francisco, California or Dallas, Texas, if you don’t have an agent, there’s something you need to know about making a powerful offer at home.
Step 1: You’ll be approved in advance
If you are purchasing on a loan, please include a letter of pre-approval in your offer. This shows the seller you can afford to buy a house and you are ready to buy. Pre-approval of a mortgage can reassure you of a letter that your funding is likely to be approved at the end of the year.
Step 2: Choose the price you can win
Prices are usually the things that sellers care most, so think carefully before you bid. The general guidelines are as follows:
In a competitive market, homes tend to receive multiple offers and sell more than they cost. In a competitive market, or if the home is on sale for more than 30 days, successful offers under prices are more common. However, recent price drops could lead to increased interest and competition from new buyers.
Be sure to learn about the local housing market as it can affect the amount you provide to your home.
Step 3: Reduce contingency
Contingency is designed to protect you, but sellers hate them because they give you the opportunity to retreat the deal. Find ways to trim them from offers without compromising too much.
Combine the tests. If you want to inspect lead, oil, or other specific issues, consider looking at these as part of a general inspection contingency rather than including individual contingencies in each. Do your homework in advance. In highly competitive situations, you can ask to have your home inspected in advance. If you are happy with the report, you can abandon the general inspection contingency.
Step 4: Set a deadline within 30 days
Closing date is when the ownership of the home is transferred to you, the buyer. Most sellers like to close quickly so that they can get the sale to be paid in bulk. In the seller’s market, the shorter closing period makes the offer even more appealing. Usually, cash will close within two weeks.
If the seller wants more or less time and the rest of your offer looks good, they will let you know.
Step 5: Pay your own closure fee
You have the option of asking the seller to pay a portion of the closing costs, including titles and loan fees. But generally speaking, the more cost you are asking the seller to pay, the less appealing your offer is.
Step 6: Talk to your listing agent
When a house is for sale, there is often a lot going on behind the scenes. Buyers are expressing interest, offers are coming, sellers are considering options. You may need to act faster or make your offer more attractive to keep it in the game. Consider contacting a listing agent and asking.
Have you received other offers or are you looking forward to it soon? When do sellers plan to review offers? Are the sellers looking for fast or flexible deadlines? Do they have other preferences I should know?
Step 7: If you get a counter offer, negotiate
Once you submit an offer, the seller will review it and accept, reject or submit the counter offer. If your offer is rejected, ask why so that you can make your next one stronger.
Counter offers are common. Sellers may want to negotiate a price, date, or contingency. But remember – your first offer must capture the seller’s eyes and convince them that you will take their home seriously. If not, they don’t mind negotiating. Find a balance between your needs and sellers. That way you’re on the way to seal the transaction.
