Mortgage rates continue to drop and have reached a 16-month low. If you have been waiting to purchase or refinance, today is a good day to explore your options for a new loan. Rates can change quickly and without notice!
If the home you are thinking about buying is likely to quickly sell, and if you have a way to later cancel the contract, you should immediately make a purchase offer. Don’t sleep on it or try to get every single question answered beforehand or you may very well lose the home. Somebody else could beat you to the draw and steal it out from under your nose while you’re busy weighing the pros and cons.
When a home seller accepts a purchase offer, the seller is hoping the buyer will complete the transaction at the price agreed upon and believes there is nothing wrong with the condition of the home. The home buyer, on the other hand, is hoping the transaction will close because the home is in perfect condition. However, we know that we are not in a perfect world! No home is perfect and many conditions can change once a contract is signed and accepted.
Pros to making the first offer:
The obvious reason to make a purchase offer right after finding the home you love would be preventing someone else from buying it. When the seller accepts an offer from you, the seller cannot accept any other offer other than a back-up offer to yours.
If your offer is first and the only offer being presented, you will have better leverage negotiating on price and terms. You can make a lower offer.
Even if other buyers are interested, they will generally pass on looking or making an offer once the seller has already accepted a contract. This helps for renegotiations, if any, after the home inspection.
Cons to making an offer too quick:
If you’re undecided between two homes and go under contract with one property, the other property may not be available if you change your mind and cancel the first one.
Return of an earnest money deposit is not automatic. Both parties are required to sign cancellation instructions.
Buyers can incur upfront fees that are non-refundable, like home inspection, water tests, radon tests, appraisals etc.
As I have said since the beginning, please call a local Realtor for all your real estate needs no matter how big or small. We are trained professionals here to make your life easier. It’s best to surround yourself with the right team of professionals that can continuously give you the right advice for all your circumstances.
The original article can be found here.