3 Must-Do’s Before Making an Offer on a Home

3 Must-Do’s Before Making an Offer on a Home

3 Must-Do’s Before Making an Offer on a Home

By Mark Spain Real Estate

Making an offer on a home is a huge milestone. At this point, you may have searched far and wide for your dream home, struggling to find the perfect fit. And now that you’ve finally found the one, it’s time to get ready to make an offer. 

Before buying a home, it’s important to take a step back and ensure you are fully ready to make this big of a financial commitment. By working with the real estate professionals at Mark Spain Real Estate, you can gain the necessary insight to make well-informed decisions throughout the home-buying process. Below, we’ve compiled a list of three must-dos before making an offer on a home. 

3 Must-Do’s Before Making an Offer on a Home

Set Budget Limits

When finding a home that is seemingly a perfect fit, it’s easy to get excited and lose sight of your financial priorities. As a buyer, staying grounded throughout your home search and sticking to a budget within your financial means is essential. Before making an offer, establish a concrete budget with your agent to avoid taking risks outside your price range.Set a budget before making an offer on a home

Not only should this budget account for your offer, but it should also accommodate monthly mortgage payments, closing costs, property taxes, home insurance, maintenance and utility bills. After all, making an offer is just the first step, and a holistic budget should consider both the price of the home and the recurring costs that follow. 

Get Pre-Approved for a Mortgage

One of the best ways to be proactive throughout the home-buying process is to get pre-approved for a mortgage. Going through the pre-approval process helps you assess your financial standings and determine what you can afford, which will help determine what you can offer and how flexible you can be throughout the negotiation process. Getting pre-approval also demonstrates to sellers that you are committed to buying a home. In most cases, a buyer’s agent may require their clients to get pre-approval before working with them to prove they are serious about finding a home. If you want a seller to take you seriously as a buyer and thoughtfully consider your offer, consider going through the pre-approval process to demonstrate your commitment. 

Outline Your Contingencies

Before making an offer, you must evaluate your needs and outline potential deal-breakers in your purchase contract. Called contract contingencies, these deal-breakers allow buyers to walk away from a purchase and get their earnest money back if certain conditions are not met. As you cultivate your offer, your real estate agent will outline the different types of real estate contingencies and help you evaluate your flexibility on certain factors. For example, many buyers instate a home inspection contingency in their purchase contract, which allows them to negotiate the sales price, request repairs, or walk away from the sale based on the home inspection results. Outline your contract contingencies before making an offer on a home

It’s important to note that though contingencies protect your interests as a buyer, they can work against you in certain markets. If your market is exceptionally competitive, too many contract contingencies may deter sellers from accepting your offer. If this is the case, there are ways to get creative when outlining your non-negotiables. For example, suppose a home inspection reveals the need for significant repairs. In that case, you could request a credit adjustment at closing rather than tasking the owner to complete the repair work. 

Making an Offer on a Home With Mark Spain Real Estate

Need some insight on making an offer on a home? The industry professionals at Mark Spain Real Estate are here to help you navigate the home-buying process. With decades of industry experience, our team of expert listing consultants will help you navigate your local real estate market hassle-free! Check out our Guaranteed Offer Program for the potential to receive a competitive cash offer on your home in only 21 days. Contact our agents today!

Connect with us on Facebook, Instagram, Twitter, or LinkedIn to stay up to date with Mark Spain Real Estate!