Components of a Home Purchase Offer

new house for sale

Homeownership is on virtually everyone’s list of achievements. You can wait to inherit a home and realize your dream, but more often than not, buying one is the best route. This gives you a sense of self-fulfillment that no amount of inheritance will ordinarily give.

Buying a house is a challenging journey. It is marred by con artists looking to fleece you, mortgage lenders aiming to milk you dry and various hidden costs that will surprise and drain you. It is thus prudent to consider home rentals here in Kansas City for a while to have sufficient time to make the right choices when buying a home.

With this option, you still have a roof for your family and are therefore in no rush to buy a home and fall prey to the many pitfalls. You can slowly save up for your down payment and carefully evaluate the homes on offer that meet your needs.

Once you get one that tickles your fancy, a real estate agent will prove essential in helping you make your purchase offer. The following are the elements you will include in your purchase offer.

Offer Price

This is the essential element in your purchase offer. The seller will list a set price for the property, but this usually will not be the amount buyers pay for it. Based on various factors, your real estate agent might recommend quoting a higher or lower price than the set price.

If, for instance, the property has been on sale for a long time or the owner is facing foreclosure, the seller might accept a lower price than he or she has set.

Your Funding Source

A seller needs to be assured that you will go through with the deal if he or she accepts your offer price. Most homebuyers fall through during the process since they do not have the money for the purchase. This wastes valuable time for the seller and lowers the price he/she might get for sale.

Including a mortgage pre-approval from your prospective lender is one way to prove that you have the financial muscle for the purchase.

Your Offer’s Timeline

home purchase concept

You will likely look at several properties when buying a home. Once you make your offer on one, this does not automatically mean the seller will accept it. It nonetheless usually bars you from making an offer on another property.

You need the seller to make up his mind as fast as possible.  You should thus have a deadline for the acceptance or rejection of your purchase offer.

Contingencies

You cannot be 100% of a property’s purchase. Various elements might change your mind concerning a home after you have made an offer on it. You should consequently include contingencies in your purchase offer that will allow you to withdraw your offer without getting penalized.

Most people think buying a home entails getting one on sale that you like and meeting the seller then exchanging cash and the property’s title. This is far from what it takes to own a home legally. To guarantee your home’s purchase is foolproof, have a property agent to handle the above elements of your purchase offer and other relevant transaction documents.