The home buying process can get very competitive. To make a firm offer on a home, you need an aggressive realtor, offer above the asking price, pay with cash, determine your earnest money deposit, and set a budget.
- Realtor is Key
Your realtor is vital. Hiring an aggressive realtor and one that knows your goal and situation will help you purchase the house you want. A realtor that knows how to negotiate an offer will allow you to ease your mind and take some of the stress away during the home buying process.
- Offer Above Asking Price
Buying a home can get expensive. Low offers will not cut it in the selling and buying market. You need to make a solid offer to beat a possible multiple-bid situation. Don’t let the asking over offering price overwhelm you. Buying the house you want, you will most likely go above the asking price. Depending on the house and the market, you may only need $2,000 to $3,000 more to show the sellers you are serious and can be taken seriously as a potential buyer.
- Determine Your Earnest Money Deposit Amount
Earnest money deposit ( EMD) is the money that goes along with your offer and shows the seller your seriousness. Earnest money deposit is also known as a good faith deposit. Traditionally the customary amount of EMD varies on the market. The amount can range from $500 to $1,000. It averages between 1% and 3% of the purchase price. If you want to be seen as a competitive buyer, offering a high earnest deposit will show the seller.
- Pay With Cash
Cash offers have an essential effect on keeping the deal primarily between the seller and the buyer. A financed deal usually comes with financing contingencies. Financing through a lender, you are at the mercy of the lender’s process. Paying with cash allows you to be in control instead of a lender.
- Set Your Budget
Offering the above asking price and paying with cash when you buy a home means you need a budget. The first step in creating a budget is establishing a limit. Setting a limit will help create a budget that will help you determine how much you want to offer on the house. Be sure to only research and write offers for homes you can afford.
To be competitive in the home buyer market, you need an agent that knows the market and can negotiate deals. Offering over the asking price, paying with cash, and setting your earnest money deposit will show the seller that you are a serious buyer. Remember to set your budget and only write offers that you can afford. For more helpful real estate blogs, go to nancyopensdoors.com.