When a Northwest Calgary home buyer has finally found a home that they love and want to buy it, it comes time to make an offer. But what many buyers don’t realize is that there’s more to making an offer than just naming a price. Offering on a home requires extra pieces that all work in tandem to convince the homeowner to accept it. Here is what all home buyers need to include in their offers to make them the best they can be.
1. The Offered Price, Down Payment, and Earnest Money
The most important part of an offer is of course going to be the price that the buyer wants to pay. Whether it’s $50,000 or $500,000, it needs to be clearly stated so it’s obvious what is being offered. The buyer also needs to include the down payment they’ll be including on the home if they have one. Is it 20% down, 3% down, or something in between? This is the time to establish the down payment. The final part of the money specifications is earnest money, the amount of money (typically 1-3% of the home’s value) that is to be paid as soon as the offer is accepted. This shows the seller that the buyer is serious and won’t try to back out because they can’t get this money back if they do.
2. Any and All Desired Contingencies
Contingencies can be added to an offer in order to protect the buyer in the case that something goes wrong with the home. For instance, a buyer can include an inspection contingency in their offer. This will ensure that the buyer is given time, usually about two weeks, to hire a home inspector and have them inspect the home to look for faults. This can help buyers make sure the home is how they expect it to be. And if it isn’t, they will have an opportunity to either back out of the deal or renegotiate with the seller. Buyers can include any number of contingencies in their offer, but including too many contingencies can lead to rejection by the seller, so it’s always good to keep them to a minimum.
3. The Mortgage Type Being Used
Most home buyers will need to use some sort of mortgage in order to buy a home, and the only exception to this rule is if they choose to pay cash for it. There are many different types of loans that a homeowner can pick from, and these loans can help buy certain homes or help buyers from certain backgrounds. Buyers should be pre-approved for a loan before submitting their offer because being pre-approved means they’ll have written proof of their approval. This can be included in the offer to show the seller that there won’t be any issue with the buyer getting their loan and they won’t have to wait for approval later.
4. The Address Possession Date
One part of an offer many buyers don’t think about is the address possession date. This is when the buyer will officially become the owner of the home and property, so it’s extremely important. Buyers need to make sure the sellers know how much time they need to get ready to move, and buyers need enough time to move out, so this can be tricky to coordinate. Buyers and sellers need to work together to find a date that works with both of their schedules, or the deal may end up falling apart.
These are just some of the different factors that buyers should include in their offer. For more, be sure to hire a skilled real estate agent who can help with all parts if the home buying process from making offers to finding homes.