Things you Need to Do Before Making an Offer

Congratulations! You've finally found your dream house and you're ready to put in an offer to make it yours. But before you take that step, it is important to complete these tasks before signing that purchase contract:

1. Get a Pre-approved Loan
Find out how much you can afford to spend on your new home.  You also have to take into consideration the closing costs and the down payment when making an offer.  Having that pre-approval will show the seller that you are serious in buying that home and therefore, will gain an advantage over a buyer who doesn't have a pre-approved loan.

2. Work with an Aggressive Full-Time Realtor
An experienced Realtor who knows the market will be able to get the best deal possible on a home.  Interview your Realtor - even if they are a friend, family member, or a referral.  Ask why you should work with him/her and what is their value proposition to you?   For example, Patrick has sold over 25 houses so far in 2011.  Patrick is a local market expert and has testimonials from clients who are raving fans of his professionalism and dedication.  Don't you deserve the same??

3. Ask your Realtor for a Comparable Market Analysis (CMA)
A CMA is an evaluation of a home's value based on available local market data including:
- How much homes similar to your 'potential new home' have sold for recently
- How long these homes were on the market before they were sold
The more information you have, the better you'll be at putting together an offer and the more leverage you'll have at the bargaining table.

4. Check the Date of Listing
The longer a home has been on the market, may mean that the seller is anxious to sell the property. However, a homeowner who has just listed his property is less likely to accept a bid below asking price than an owner who's been waiting months for a buyer.  This is different for new construction homes because the builder, or listing agent, may be putting the homes on the market prior to the foundations being poured.  Having a Realtor who is well-versed in both new construction and re-sales is very important.

5. Conduct your Own Home Inspection
Buying a home is a big investment, and you can find yourself surprised when something has to be fixed later down the road. If there is a repair needed on the property, you can either ask the seller to shoulder the cost of the repair or reduce the sale price - to cover for the repair expenses.

6. Test out the Commute
You also need to consider the location of your house from your work place. Test out the morning and evening commutes to see if it's a convenient drive. After all, you'll be doing this everyday once you move into your 'new home'.

Having a Realtor work with you on making an offer will be advantageous to you. With his access to numerous database, he/she can give you information that will help you decide on making the right offer that will be accepted by the seller.  If you know of a friend, family member, or co-worker that is in the market to buy or has mentioned how he/she is interested in purchasing a home, please contact Patrick today.