While buying a home might seem as simple as paying the asking price, knowing the ins and outs of making offers is crucial to buyer success. Everything from the terms of your mortgage loan to eventual closing costs can affect the amount you spend on your home, and making the right offer can significantly affect your chances in a competitive market.
Here are some of the basics of making an offer on a house:
Start by searching online listings for properties to view, or book a tour with an agent. The more knowledgeable you can be about the property, its location and history, the more informed your offer will be. And don't forget, your real estate agent can use their expertise to guide you every step of the way.
When it's time to make your first offer, consult your real estate agent for help choosing a starting price. Consider your own budget as well as the local market, home condition and seller situation.
An earnest money deposit is an upfront amount of money included with your initial offer on a house. It's used as a sign of good faith, and also a form of insurance for the seller in case you back out of the sale.
Typically, the expected amount for this deposit is between 1% and 3% of the home's purchase price. However, if you're in a highly competitive market, it can benefit you to offer up to 10%.
A contingency is a provision in your offer which protects your interests in case the unexpected happens between your offer on a house and closing. This allows you to withdraw your deposit under agreed upon circumstances.
One standard contingency example is a home inspection contingency, which allows you to back out of the sale without loss if the inspection uncovers any major problems with the property.
Real estate agents can help you decide what contingencies could work best in your favor. Depending on whether you're in a seller's market or a buyer's market, some strategies might work better than others.
Broker Profile: Pierre comes from a diverse background. His adolescent and early adult years found him working for his father, a renowned structural engineer, and his brother, an architectural designer and general contractor. His knowledge of construction design (architectural & structural) and practices is significant. He coupled his construction background with his considerable sales experience, by becoming licensed to sell real estate in Massachusetts in 1986.
Pierre is also a licensed Attorney in the Commonwealth, who formerly worked for the Massachusetts Attorney General’s office as a litigator in the Victim & Witness Assistance Division of the Family & Community Crimes Bureau, litigating cases involving victims of violent crime, and since then has had his own legal practice.
For decades, Pierre has excelled in helping buyers of real estate find that condo, single-family, multi-family, lot of lands, or commercial property they desire to buy, or by effectively marketing his clients’ properties to sell their property for the most amount of money possible. His professional background embodies the ideal combination of construction, sales, negotiating, and contract drafting, which is essential to actualizing his clients’ goals and/or dreams. He does all of this with attention to detail, integrity, and success.
Since 1995, PCR Realty has helped buyers and sellers make their transactions as successful as possible. Using a consultative approach, PCR Realty approaches each experience as a unique opportunity for its clients. As a full-service real estate brokerage firm, PCR Realty provides leading-edge services for buyers & sellers.
When it comes to successfully navigating today’s complex real estate market, you need to work with someone who has the experience and commitment to see it done right. PCR Realty excels at matching buyers to sellers. From state-of-the-art marketing to an experienced broker, PCR Realty works diligently to far exceed your expectations. PCR Realty invites you to learn more.
