Things you need to know before writing an offer

Things you need to know before writing an offer

When you were getting ready to buy your first car, did you make an impulse decision at the dealership, or did you arrive equipped with research on makes and models and prepared with questions about vehicles that would best fit your lifestyle? Chances are, you did your homework in preparation for a big financial undertaking.

When you are preparing to buy a property, it is likely the biggest financial undertaking you have made to date. Similar to how you might have prepared to buy a car, there is much work for you to do before signing your name on the dotted line when you find a property you like.

Pulling the trigger on a home is not as simple as any other purchase, but you can make the process a little easier as you prepare to write an offer by following some of my tips to prepare for the large purchase ahead.

First off, get a strong team behind you. 

Like a boxing match, the majority of the work happens outside of the ring, beginning with a good head coach leading the way. One way of doing this in the real estate market is hiring a buyer’s agent who can help you every step of the way. A buyer’s agent can guide you through writing an offer and ensure you are making sound decisions. This extra step gives you extra protection in the long run, and could help save money along with the piece of mind that you are making a smart financial decision.

Second, get your finances in line. 

Even before you are ready to write an offer, be sure that you have chosen the bank or broker you will be financing your house through. While you may not have the option to get pre-approved for a home, sit down with a professional and discuss your financial options and crunch the numbers of what you will be able to afford. This way, when you place an offer, you can be smart about what price is truly tangible for you.

Third, investigate the details about the home you’re interested in.  

Ask the agent the following questions:

• How long has the property been on the market for?
• Why have previous offers been rejected?

Even before you write an offer on a property, inspect the property at least once and preferable multiple times to discover more details on the home you’re interested in. Using this information, you can be prepared to write an offer that you believe has a chance at being accepted at a fair price given the details about the property itself.

Bottom line: impulse buying when it comes to big-time investments like a property is not a smart financial move. Be sure to follow these tips to ensure you are prepared to take on the financial investment and you are making a smart move in the long run.

If you want more information on what steps you should take before buying a property, you can download the free Ultimate Checklist To Save You Money.

How to write an offer. Top 3 things to know