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7 Things You Should Do Before Submitting An Offer

By
Real Estate Agent with CBSHOME Real Estate

You have found a house you really want. Now it's time to make an offer. Good for you! But heed this warning: Be sure you're serious - it will cost you plenty!  Here are 7 things you should consider before submitting an offer to a Seller.

  1. Ask your Realtor to make an analysis of what "like" houses are selling in that particular neighborhood. You don't want to pay more than market value for the house. 
  2. Figure in all your costs. Your mortgage lender can take the amount you are going to offer (and all the other variables you have already discussed and agree on) and plug the figures into a software program that will spit out a Good Faith Estimate (GFE). It will show all the costs you will be responsible for and how much your monthly payments will be.
  3. The only time you may want to make your offer the highest you can afford is when the market is really hot and you have competition for the house. Then you want to make your offer as sweet as possible for the Seller. In today's market, know your upper limit and base your bid not on the most you can afford but select a lower figure. This way you have room to negotiate. 
  4. Expect to negotiate. If you are lucky the Seller may accept the first offer.  Experience has shown me that there is usually at least one counteroffer.
  5. Serious offers come with an earnest deposit. I'm often asked how much the earnest deposit should be. There is no set amount but over the years I've learned the rule of thumb is 1% of the amount offered.
  6. Be specific - put everything in writing. Don't count on the goodness of others or assume items will be included. Have your Realtor include all items in the offer that are vital to you.
  7. If your offer is accepted remember you must pay up front for all inspections.  Inspections usually have to be completed within 5 business days after acceptance of the contract and both parties have signed. Remember, the payments for all inspections are due the day the inspections are performed. If the inspection is unsatisfactory you don't have to buy the house but you still have to pay the inspector(s).

Research has proven that buying a home is an emotional experience. If you keep that fact in mind, then make certain you are smart and cover all your bases. Follow the steps above and you will usually come out a winner with your dream house.  Making an offer on Omaha real estate is taken seriously by all parties and at CBSHOME we can help you make the right choices.