Your Complete Guide To Purchasing A New Home
April 29, 2019 | by BMI Staff
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Step Seven: Make an offer.
Once you’ve found your perfect home, complete with all of your needs and some of your wants, you’ll want to put in an offer. This part of the process is a bit of a balancing act, because you neither want to lowball so much that you offend the seller or lose your credibility as a buyer, nor do you want to pay more than what you should. Some tricks to putting in the most reasonable offer are researching the other homes in the area to find out their selling price, determining how desperate the seller is to get rid of the property, and taking a look at the type of market in the area. If nearby homes were priced similarly to yours, you may be okay to accept a price close to asking. If the seller is living in a transition home, awaiting the sale before making their next move, they might be more willing to drop the price. Finally, if the market in the area is that homes are rarely vacant and sell quickly, you probably don’t want to lose your footing by offering too low.
Step Eight: Review the contract.
The final step before putting pen to paper is reviewing the contract. You’ll want to understand every clause within the document, ensuring there are contingencies that will allow you to back out of the sale should something go wrong. During this phase, you’ll also want to get an inspection. Inspections play a key role in the something-going-wrong part. If there is minor damage, you can negotiate a lower price to compensate. If there is deal-breaking damage, you’ll need to be able to change your mind on the sale. After the inspection, if everything goes as planned, you’ll pay the closing fees. These fees usually add up to 2-3% of the overall cost of the home. Finally, you’ll submit your mortgage application.
Step Nine: Finally put pen to paper.
Drum roll, please! It’s the moment you’ve been waiting for. The stars have aligned, and you’re inches away from your first owned home. You’ll have a final chance to walk through and make sure nothing has changed since your inspection, and if all is as it should be, you’ll pay the required closing fees and sign the dotted line—or several dotted lines, rather. On this day, be sure to bring photo identification, inspection certificates, and any other home-buying-related paperwork. Once all is said and done, you’ll be handed the keys to your new home.
Mazel tov on your new adventure!