Insight from the Law office of Joseph Marino, PC

After going through the struggle of searching for a property you love, hoping that the property will fall within your budget is a silent prayer you pray. If you are a first-time buyer, you may have made the mistake of giving a specific budget to your agent. But this might mean that you miss out on seeing the property of your dreams because it falls a little outside of your budget.

A better way to go about it is to have the agent give you several property options across different price points, and you then make an offer.

However, making an offer can be daunting and could entail a lot of back-and-forth. We recommend preparing yourself before you make that offer. To learn how, read on! We'll be dishing out five tips to make an undeniable offer on a home. 

        Do Market Research

When it comes to acquiring a property, you should have a preferred location. The reasons why you pick a location are best known to you, but it's essential. Once you figure out the location, you should research the area. From the local research, you'll gather lots of info, but one that matters most is the prices of houses around (In the world of real estate, this is called comps).

With this information, you can confidently submit a reasonable offer without being unfair. Likewise, you will easily know when the asking price from the seller is unreasonable. 

        Do Not Give Info About Yourself

Buying a house is a transactional activity, not a friendly activity. Unless you want to buy a property from a close friend of yours, the seller doesn't need to have too much information about you.

Information is power, and when the seller knows simple facts like where you work and how much you earn, they may give prices above usual. 

        Have a Budget

Your agent or seller does not need to know the exact maximum amount you are willing to spend. But since you are in charge of your finances, you need to have a specific budget.

One common guideline is the “28% Rule,” which dictates that your mortgage shouldn’t be more than 28% of your monthly gross income. 

        Figure Out the Down Payment

If you love a property and have the financial backing to buy it out, you can do so after taking advice from experts. However, if you don't have the funds immediately, you can always start by making a down payment. A down payment is the initial cost you pay for the home, but not a full payment.

Before now, a 20% down payment was the most common type of down payment, but in recent times, it has gone lower. In fact, in 2019, the median down payment for houses was down to 6%. 

        Take Action 

If you want to close a deal, the best way to show seriousness is to take action. Of course, that will mean making a down payment. If you do not have the money immediately, you may want to look into a

Federal Housing Administration Mortgage Loan (FHA) or any other kind of housing loan that would apply

to make the down payment. 

        Speak to an Expert

Offering to buy a home is not as simple as naming a price — it is a technical task. With the tips in this guide, you should be able to make a great offer for a home.

However, because the agents can be more experienced in this field, it's always better to speak to an expert. 

At The Law Office of Joseph Marino, we help you with real estate planning and management.

Our team has the best experience in real estate to handle all buying and selling business while you sit back. Let's help you deliver your dream home with no stress call our office at 631-502-5650