SCHNEIDER Real Estate, Inc.
Roger Schneider, SCHNEIDER Real Estate, Inc.
Email: [email protected]

What to Do When Submitting an Offer

by Roger Schneider 04/05/2020

Photo by RawPixel via Pixabay

You and your agent invested hours, days, weeks and even months searching for the right house. Time spent visiting open houses. But now all your efforts pay off. You’ve found the one. It’s the right size, the right neighborhood and within the budget parameters. This is the home of your dreams. It’s time to make an offer.

First Things First

Let your agent guide you. A great agent knows what the market will bear. They also have the experience and know-how to save you thousands on your home purchase. When you work with an agent, you can submit an excellent offer that the buyer wants to accept.

Don’t make the mistake many first-time homebuyers do of low-balling the offer. Of course, you want to pay as little as possible for the house, but too low of an offer, one that doesn’t account for proper market analysis, just frustrates the seller. If nearby, comparable homes recently sold for five to six percent less than the asking price, you can reasonably offer seven to nine percent less, leaving both of you room for negotiation. But if this is a seller’s market, offering less than the asking price exposes you to the risk of being outbid by other buyers. Your agent knows the temperature of the market. They’ve already experienced what buyers accept and what they reject. If this is the house you want, follow the guidance of your agent when making the offer.

Dot the I’s

Submitting a bid for real estate is a legally binding document. You don’t want to make a costly mistake that jeopardizes your purchase or forces you to buy a home that requires a lot of repairs and renovations to be livable.

Cross the T’s

Having a pre-approval sets you up for negotiating power. Remember that the seller actually wants to sell. And you actually want to buy. This is where a little give-and-take compromise wins the day. Once you make the offer, the seller counters, you resubmit, and they accept, your next action includes a home inspection. Your knowledgeable agent will have written contingencies into your offer for failures in significant systems that the inspection reveals. At this point, any HVAC, plumbing, electrical, foundation and roof systems that need repair are negotiable. Do not let anyone talk you out of doing an inspection. It is well worth the cost to protect yourself from major but hidden issues. Your agent can recommend a home inspector, or you can hire one yourself. Make sure they have all licenses and certifications.

The other primary contingency should be the final appraisal. To qualify for your loan, your lender will require an appraisal of the property’s fair market value. While the inspection protects you from future problems, the appraisal protects you from overpaying. If the appraisal comes in lower than your accepted offer, your agent will begin renegotiation for you.

Now you’re on your way to closing. The best day in the process. Use your professional real estate agent’s abilities to get you to the finish line.

About the Author
Author

Roger Schneider

SCHNEIDER Real Estate, my family's business has been at the forefront of our area's Real Estate transactions for over 40 years! With experiences in the following areas; St. Charles, St. Louis, Lincoln, Warren, Jefferson County, I help both buyers and sellers meet their real estate objectives. I have extensive knowledge of each of the communities located in and around St. Charles, and I will work tirelessly on your behalf to make your next St. Peters home buying or OFallen home selling experience a pleasant and successful one.For sellers, it is my commitment to help sell your home or property in a timely fashion while helping you attain the highest possible price for your real estate. If you are interested in receiving a free home valuation, I encourage you to fill out my free home valuation form.For buyers looking for homes or other real estate opportunities here in St. Charles or other surrounding communities, I will work with you to find your ideal home. I will provide you with all of the necessary tools for finding the right property. From free access to search almost all St. Charles, St. Louis, Lincoln, Warren, Jefferson County area homes, to the ability to fill out My Dream Home Finder Form, everything I can possibly provide will be at your service. In addition, once we've narrowed down what you are looking for, we can begin the home showing process so you can get a closer look at the homes that should be a good fit. I help negotiate the best possible deal for my clients with each and every real estate transaction.Nothing satisfies me more than seeing the smiles that come with a successful real estate transaction. Thanks again for considering me as your Realtor.