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Making an Offer on a House

Author: Mlive | February 18, 2020

How to Make an Offer on a House

You are in the thick of your search for a new home. You’ve figured out your financial situation to determine your budget and have toured several places as part of your home search. Now, you’ve finally found the house that connects with you and meets all of your needs. That means it’s time to place a proper offer. There are several details you must iron out before sending your offer to the homeowner before they can accept, decline, or counter it. At Get Movin Realty, we will provide you with all the tools and knowledge required so you will know how to make a fair offer on a house. 

 Pick Your Starting Offer Number

Deciding what your initial offer amount will be is dependent on a variety of factors, including your budget, the local market, how long the house has been available, and the condition of the home. Thankfully, you won’t have to analyze all of this data by yourself. Get Movin Realty has experienced licensed Realtors you can work with that know how to devise a reasonable offer number.

Detail the Concessions and Exclusions

The initial number that you decide upon may also depend on the concessions or exclusions that you include in your offer. Concessions are costs that the seller agrees to pay on the buyer’s behalf, like origination fees or title work. This will reduce the amount that you have to pay upfront and may affect your total offer number. You may also request that the seller leaves behind certain appliances, like a fridge or washing machine, for you to use after you move in. This can also decrease how much you initially offer because you are receiving value in other ways.

Exclusions work the opposite way. These are items that the seller may have specifically not included in the price of the home because they plan on taking them to their new home. It’s essential to have a detailed understanding of what will and won’t be in the home after you move in so you are not surprised. This ensures you have an accurate view of how fair your offer is.

Outline Your Contingencies

Another important part of your offer is contingencies. These are agreements between you and the seller about what responsibilities need to be carried out by which party before the closing can occur. Common contingencies include home inspections to make sure there are no underlying issues and appraisals. You can also improve your deal and even lower the price by offering sweeteners like promising to close quickly.

Make an Earnest Money Deposit

Part of your purchase agreement will include the amount of money you are willing to put down as an earned money deposit. This is simply a good-faith measure that shows you are serious about the deal and are willing to put your money on the line to get it done. Typically, an earned money deposit is between one and three percent of the purchase price. After you decide on the amount with the seller, it will be put into an escrow account that can’t be accessed until the deal is done.

Get Help Every Step of the Way

Once all of that is squared away, your agent can send your offer. All that’s left to do is wait for the response. Get Movin Realty makes your life easy by offering real estate expertise to guide you through every stage, from making the offer to closing the deal, all while saving you money. If you want to learn more about how to make an offer on a house, register an account with us online to take advantage of all the benefits we provide to buyers.