Many new home buyers believe the offer they place on a home for purchase is simply a dollar amount on a page. This is far from the truth. The offer must consist of more than just a dollar amount.
Things You Will NeedReal Estate Agent
Total Approved Amount
Earnest Money Deposit
Step 1Gain pre-approval. The first step in making an offer on a new home is the pre-approval. The lender needs to approve the buyer for the price of the home minus any money the buyer may have for a down payment. If the buyer is not pre-approved, the buying process could take longer and they may be outbid for the contract on the home.
Step 2Contact a real estate agent. When writing the offer, the contract will need to cover the contingencies of the contract. Contingencies is another word for the specifics listed in the contract that the buyer is willing to accept or the changes they want to have made before sealing the deal.
Step 3Gather an earnest money deposit. The earnest money deposit is a placeholder, if you will, on the contract. This money tells the homeowner the buyer is truly ready to seal the deal. The earnest money deposit should never be more than 2% of the total offer on the home.
Step 4Be ready for a rebuttal bid. The homeowner has the right to come back to the buyer with a higher bid or changes to the contingencies on the contract. Rarely is a home contract agreed upon on the first try.
The real estate offer is the most important part of buying a home. The real estate agent can help the buyer dig out of the weeds and place an offer that makes everyone happy.
Tips & WarningsNever place a large earnest money deposit on a home, it could be hard to get back.