Making an Offer on a House: The Unasked Questions

Making an Offer on a House: The Unasked Questions

making an offer on a house

Buying a home can be an overwhelming task, but making an offer on a house is exciting! It takes time to arrange your documentation, get pre-approved, and even find the time to start looking! So when you do find the right house in the right location at the right price, you had better believe you will make an offer.

Price. Making an offer on a house is all about price, right? It is, to a point, but it’s not the only part. You need to add some wiggle room so that if the price cannot move, maybe you can try tweaking the closing date, chattel, or other components.

But even if you plan on making an offer on a house, you need to remember that this is a huge financial transaction. You need to look before you leap. And that means asking some questions during the process to make sure this house is truly the best one for you. Some of these questions you may ask yourself, while others could be about the house itself. Take some time to ask these questions and reflect on the answers to verify that you want to continue with your offer.

making an offer on a house

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Here are several questions to ask before making an offer on a house:

  1. Can I afford this house?: Odd question. Assuming you have been pre-approved, of course you can afford the house. Sure, maybe you can afford the monthly payments, but that mortgage payment is just the first in a line of expenses that come with owning a home. Property taxes, higher utility bills for the larger space, maintenance, renovation. And don’t forget about the one-time costs related to actually buying that home. Plus you still need to save for retirement, transportation, food, and all of that other everyday life expenses. So can you truly afford this house?
  2. Is the property a good deal?: That’s a bit of a tough question. Ask 20 people, you could get 20 different answers. To get an idea, ask your real estate agent for a Competitive Market Analysis (CMA). This document lists all of the homes that are for sale and have recently sold in the neighborhood. You can see the listing and purchase price, square footage, number of bedrooms, among other aspects of each property. Compare these details to the one you want to buy to see if it fits in well. But in addition to the CMA, take a look around the area. Are the houses in good condition? Are there any amenities and do they look like they have a healthy clientele? Is there construction going on, possibly indicating area growth? These factors can also hint at whether the area is on the rise, which means your home is in a good location.
  3. Why are you moving?: This is definitely a question you may feel funny about asking the sellers. And you may never be sure about the answer, especially when it comes to more personal reasons, such as a divorce. But still, you should ask. The answer may indicate whether you will be negotiating with people who really do want or need to sell their property. Some sellers simply put their house on the market just to test the market, and so don’t have too much thought in actually selling. You want to negotiate with people who are motivated to sell.
  4. Can I back out if I change my mind?: Great question! Who hasn’t been swept away by excitement or emotion, only to have second thoughts once that excitement has faded? We all have. And you don’t want to be beholden to a purchase that you may regret. So try to give yourself some time between seeing the house and making the offer – the proverbial “sleep on it”. Get some family or friends to see it with you for a second opinion. Make your offer contingent on the inspection in case the home inspector finds something wrong. Finally, make the offer ‘subject to appraisal’, which means you can back out if your mortgage lender feels the house is not worth your offer amount.

Buying a home is not something to be taken lightly. You need to be sure that your hard-earned money will be well spent. Take your time to ask questions you may not normally ask, and be sure to contact the mortgage professionals at Shamrock Financial too. We can guide you when making an offer on a house to assist you from start to finish.

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