Things to Consider Before Submitting An Offer

Finding the perfect home is often a mission. You go and view homes and you are full of anticipation and excitement and then you find THE ONE! The house you want to call home. You are tempted to put an offer right on the spot, but have you done your due diligence? Here are some things to consider before putting in an offer..... Note that with the current housing market, you may want to ask your REALTOR® these questions ahead of time or when you go and tour the home. That way you can make a quick decision on whether or not you want to purchase the home.

Taxes: Beyond your mortgage payment you are going to want to look at the tax rate for the area in which you are considering purchasing. Taxes vary and can become quite steep in certain areas. Remember to budget taxes into your monthly budget when thinking of purchasing a property.

Homeowners Insurance: Shop around and take a look at what homeowner's insurance would cost for homes in the area that you are looking to move.

Utility costs are another item to keep in mind. The bigger the house, the bigger the utility bills usually are. Did you know that your REALTOR® can ask the listing agent to provide a range from the seller on their utility costs? They don't necessarily have to provide the information, but it is always helpful to get an idea of what they are paying on average to help you better estimate your costs.

You may want to ask your agent, how much the seller paid for the home and how long ago they purchase the home. Although irrelevant at times, if the home was purchased a year ago and the seller wants a large profit, it is unlikely unless major renovations have taken place. Also, ask your agent to run the comps on the home to see if you will be making a reasonable offer and take into consideration how long the home has been on the market.

When viewing the home take into consideration any known home repairs that need to be made. If the seller is not willing to make repairs, you may want to ask your agent to negotiate for some seller-paid closing costs or even ask for the seller to provide a home warranty at the closing of the sale.

The most important question that I think you should consider prior to putting in an offer on a home, is whether or not there are any current offers on the home? If there are, then you could get into a bidding war and you need to be prepared for that. You also need to be prepared to give your highest and best offer and potential to still lose the home.

Need any help finding your first home or need guidance? Contact me today!