|7. Make an Offer
Steps to Home Ownership!
While much attention is spent on offering prices, a proposal
to buy includes both the price and terms. In some cases, terms
can represent thousands of dollars in additional value for
buyers -- or additional costs. Terms are extremely important and
should be carefully reviewed.
You sometimes hear that the amount of your offer should be 'x'
percent below the seller's asking price or 'y' percent less than
you're really willing to pay. In practice, the offer depends on
the basic laws of supply and demand: If many buyers are
competing for homes, then sellers will likely get full-price
offers and sometimes even more. If demand is weak, then offers
below the asking price may be in order.
How do you make an offer?
The process of making offers varies around the country. You make
an offer, the owner, in turn, may accept the offer, reject it or
make a counter-offer.
Because counter-offers are common (any change in an offer can
be considered a "counter-offer").
How many inspections?
A number of inspections are common in residential realty
transactions. They include checks for termites, surveys to
determine boundaries, appraisals to determine value for lenders,
title reviews and structural inspections.
Structural inspections are particularly important. During
these examinations, an inspector comes to the property to
determine if there are material physical defects and whether
expensive repairs and replacements are likely to be required in
the next few years. Such inspections for a single-family home
often require two or three hours, and buyers should attend. This
is an opportunity to examine the property's mechanics and
structure, ask questions and learn far more about the property
than is possible with an informal walk-through.