Making an Offer on a Home
Navigating the Ins and Outs of Buying a Home in Phoenix
If you are considering buying a home in Phoenix, take some time to evaluate what your needs and wants are. You’ll have to narrow down your desired neighborhood, determine the style of home that best suits your lifestyle, and punch some numbers into a home mortgage calculator. All that just to get started! But then what, you may ask? The following guide will walk you through it, and fear not, it’s easier than you might think!
Prepare Yourself for the Ride
Get your affairs in order before you begin making a real estate purchase, especially if you are a first time home buyer. Unless you have cash in hand, your ability to buy depends on your ability to secure mortgage financing. So, make sure you know what your credit report says about you. If you have property to sell, get it listed ASAP.
It’s definitely in your best interest to determine a mortgage payment that will fit your budget. Consider getting mortgage pre-approval, or at least pre-qualification, before submitting any kind of offer. This makes for a great bargaining tool when the time comes to negotiate.
Get Professional Help
With knowledge comes confidence. If you are not a licensed real estate professional yourself, it would behoove you to enlist the services of one. They will help you understand more about the Phoenix home buying process. You’ll rest easier knowing what is required of you and everyone else involved in the transaction.
Make an Offer They Can’t Refuse
There’s a lot to consider when you’re drawing up a home purchase offer. You probably have questions, such as:
- Why is the house on the market?
- Is this a foreclosure or a short-sale property?
- Is there competition for the home?
- What have comparable neighborhood properties been selling for?
- How much earnest money is the seller requesting?
- What is the anticipated closing date?
Your realtor is there to help you find out the answers, so ask away!
Once you have learned more about the seller’s situation, you’ll be in a better position to write up an offer. Remember, it’s not only about price. You’ll want to protect your interests with the terms and conditions of the transaction, but don’t make the list too long, as this just may cause the seller(s) to lose interest. Also, remember to leave some room for negotiation. While you need to create a scenario that caters to your own personal situation, you must also take into consideration the needs of the other parties involved.
Perhaps most importantly, do not insult the seller(s) with a low-ball offer, no matter what the current market conditions. This technique rarely results in a winning situation, and it can make you look naïve and uninformed. If you keep handy the following list of important things to consider when drawing up an offer, then you will most likely end up with an offer that just can’t be refused:
- Get pre-approved
- Understand the seller's interests
- Make a strong earnest money deposit
- Be Flexible
- Avoid Low-Balling
Buying a home in Phoenix (or anywhere for that matter) is certainly a task fraught with ups and downs. But there are steps you can take to ensure that your transaction flows as smoothly as possible. Just remember to follow the steps and you’ll be enjoying your new home in no time at all!
