Home Buying For First Time Buyers (Part 5)
Greetings to you. You've made it to the next step. Previously we discussed beginning your house hunt and finding the right agent. Now let's get into the nitty-gritty; Making an offer to the seller.
Step Five: Making an Offer
When making an offer on a home that suits you, the offer must be in writing. This is to keep proper documentation. The offer is based on what the home is worth and how much you are willing to pay for it. The home is usually appraised and has a set selling price. Most offers include an earnest money deposit. This is about 1%-2% of the asking price.
What happens when you make an offer?
The seller accepts offer and you move to the next step.
The seller makes a counteroffer that cancels the original offer. You can either accept or reject the offer.
The seller can reject the offer. You can either submit another offer or move on to the next home.
There will be instances where negotiations take place. That is a huge reason why having a skilled agent to support you in this process gives you leverage.