whats the first step to buying a home after you've found the one that you want.?

Question

do you make an offer before getting pre-approved. if an asking price is $124,000 what offer should I start with..... first time buyer...clueless.

would it be o.k to find the owner of a property and make an offer independantly after someone else has just started a contract

Answer 1

You should put in an offer at this point because someone else could step in and get it. The time to get preapproved is before you start looking at homes. The offer should be based on the condition of the house. Is it worth $124,000? Then I would offer $120,000 and go up from there. Also, does it include the home warranty and appliances? If not, use those as negotiating tools, too. If the house is worth more than the asking price, you are going to end up paying pretty close to $124,000.

Answer 2

If you haven't already, find a reputable Realtor to be your buyer's agent. Then get pre-approved (it takes less than a day) for a loan. Then let your Realtor take over from there. Your pre-approval will determine the exact amount you can spend, but you need further guidance on how much you should pay for a home. Nowadays, informed sellers will not accept an offer without a pre-approval or pre-qualification letter.

Once that is done, make an offer, backed up by an earnest money deposit. This is a good-faith deposit that is held in escrow, showing how serious you are about buying the house. An offer is only on paper, but backed with earnest money, it holds that much weight. You pay earnest money once your offer is accepted, and a contract is drawn. Earnest money is tied to the contract, if anything goes wrong during the contract period the defaulting party loses claim to it. Consult your Realtor or attourney regarding earnest money.


Also, your Realtor may advise you to buy an option period. This may cost you $100-$500, but it may save you a lot of aggrivation. During the option period, you have that period of time to get the house inspected to make sure it is in acceptable condition, without it being sold out from under you. During the option period, you have the 'option' to back out of the contract for any reason that may come up. You can even take back your earnest money.

As one poster noted, you may be confused at this point. That is what your Realtor is there for. Ask as many questions you may have.

Answer 3

In the area where I live, it is best to be pre-approved for your loan when you make the bid. It usually looks better to the real estate agent and the seller as they know you are serious about buying the home. If there is a lot of competition from other potential buyers for the same property, you will probably want to bid higher than the asking price. On the other hand, little competition gives you some leeway, and you may be able to offer a little less.

Answer 4

Always get pre-approved first. Then once you find the home, ask your agent how long it has been on the market as that usually is an indication of what kind of negotiating you can do with the seller. Depending on where the house is located and the supply/demand for that area - the amount you should offer can vary. If you have a good buyer broker agent working with you, they should be able to advise you on what to offer.

Answer 5

You should get pre-approved before you even start looking. There's no sense looking around and making offers without knowing how much you will qualify for.

Once you're pre-approved and find the home you want, make an offer. Your offer should be based on an analysis of what the property is worth. Your agent can help with all of this.

Answer 6

First of all, you have alot of advice that's been given here...and for the first time buyer, by now, you are totally confused. My advice to you is to ask somebody close to you (family, friends) who have bought houses before you help you.

I've been in the real estate business (recently retired) for 30 years and even this advice here confuses me! lol

If you are going through a real estate company, definitely get a BUYER'S AGENT. No cost to you, they will help you ALOT!

Yes, make an offer first. SUBJECT to you obtaining the loan. Prequalification only means the bank tells you how much you can borrow, it doesn't qualify you at all. Your realtor can do that or Just call the the bank with your debt and income figures and they can tell you over the phone.

Usually offers are made 10%-20% below the purchase price. Go by that.

I would love to be able to be right there with you, I loved working with first-time home buyers, it's awesome! Good LUCK!!

Answer 7

The main thing is the best price of the Home u have found rather than bidding on, First Judge the Market Price of the Property,asking other broker that u want to sell off the same , what amount can u get, The quoted price will bring the actual price of property to u, Now start bidding from that price itself and u can go up to 10% higher side as the property is as per Ur taste/requirement.
And get the deal negotiated.

Answer 8

You should get pre-approved before you start looking for a house. After finding a house, you should have your buyer's agent make an offer. Your agent will know your particular market and can aid you in making the decision on how much to offer. If you don't have a buyer's agent, you should--especially as a first time buyer. A realtor, by law, works for the seller....and buyer's agent will work for YOUR best interests.

Answer 9

The first thing you should do is find an agent to represent you and handle all the negotiations. This is what we do. It is our job to get you the home you want for the price you can afford and most agents work closley with at least 1 mortgage company to handle the financing.

Answer 10

You would make an offer to purchase.
But... first you should know the prices of comparables, sold houses and for sale homes in the same neighborhood.
Make sure that the title is "clear" and that you have good representation.