Click a question to jump right to the answer:
- Are interest rates negotiable?
- Are low-ball offers advisable?
- Do I need an attorney when I buy a house?
- How do I know what price to offer for a home?
- How is the listing price of a home decided on?
- Is there a secret to good negotiating?
- Should I include an inspection contingency in my offer?
- What are some tips on negotiation?
- What furnishings are included in the sale of a home?
- What is a contingency?
- What is the best time to buy?
- What is the difference between list price, sale price and appraised value?
- What is the first step to buying a home?
Are interest rates negotiable?
Some lenders will negotiate the interest rate on home loans, but this often depends on the buyer’s credit score and the number of points on the loan. Shop around with different lenders to find the best deal, and remember to pay attention to both the loan interest rate and the number of points.
Are low-ball offers advisable?
A low-ball offer is an offer on a house for far less than the listing price. There are numerous reasons one may put a low-offer on a home, such as: the buyer feels the home is overpriced; the home has been on the market for a long time; the buyer thinks the sellers may be motivated; or, the buyer simply wants to see if they could get it for very low price. It is advisable to first speak with your Magnificent Manors Realtor ® to gain their recommendations prior to presenting a low- ball offer on a home. Though a low-ball offer could be accepted, presenting a low-ball offer may offend the seller to the point that they refuse to negotiate any further, or the seller may decide to reject the offer or not respond.
Do I need an attorney when I buy a house?
Each state has different legal requirements for real estate transactions, and many require the use of an attorney for the closing process. Speak with your Magnificent Manors Realtor® to learn more about requirements in your area and for attorney recommendations.
How do I know what price to offer for a home?
There are many factors to consider when placing an offer on a home, such as the current real estate market (is it a buyer’s or a seller’s market), comparable home sales in the neighborhood, and the condition of the home (move in-ready or fixer-upper). Other items that can impact the offer price are the contingencies of the offer – will you be asking for closing cost assistance, the inclusion of appliances, extended finance contingencies, or the sale of your home as a contingency? A seller may be more likely to accept an offer that is low in price and has no extra contingencies over a higher price offer that includes a contingency on the sale of the buyer’s home. For this reason, it is best to consult with your experienced Magnificent Manors Realtor ® who can formulate an offer that not only includes all of your needs and wishes, but is also appealing to the seller.
How is the listing price of a home decided on?
A new listing should be priced according to the current housing market. Your Magnificent Manors Realtor ® will perform a comparative market analysis (CMA) on your home, which estimates the value of your home based on recent sales of similar homes your area. Using the CMA and their market experience and expertise, your Magnificent Manors Realtor® will price your home accordingly. Don’t hesitate to ask your Magnificent Manors Realtor® how he or she came to the listing price of your home and for examples of the homes they used as comparisons in the area.
Is there a secret to good negotiating?
One of the best assets to have during the negotiation of a home is your Magnificent Manors Realtor® . There are many factors to consider when negotiating the price of a home – the listing price, added contingencies, the proposed closing date, asking for seller assists, as well as the motivation of the seller and buyers, are just a few examples. Your Magnificent Manors Realtors® use their education, expertise and experience to formulate not only the best offer for your client, but also an offer that will attract the other party.
Should I include an inspection contingency in my offer?
An inspection contingency is highly recommended for all purchase offers. A contingency is a stipulation added to a real estate contract that would make the contract null or void if the condition were or were not to occur. An inspection contingency allows the prospective buyer to hire a professional home inspector to assess the property for needed repairs and/or replacements. Based on the inspector’s findings, the buyer has the ability to amend their original contract to include necessary repairs, credits or even terminate their offer completely. There are many approaches to successful negotiations of the home inspection contingency that your Magnificent Manors Realtor ® is expert in achieving. Inspection contingencies are very common, and therefore widely expected and accepted by sellers.
What are some tips on negotiation?
One of the best assets to have during the negotiation of a home is your Magnificent Manors Realtor® . There are many factors to consider when negotiating the price of a home – the listing price, added contingencies, the proposed closing date, asking for seller assists, as well as the motivation of the seller and buyers, are just a few examples. Your Magnificent Manors Realtors ® use their education, expertise and experience to formulate not only the best offer for their clients, but also offers that will attract the other party.
What furnishings are included in the sale of a home?
Generally, any fixtures that are permanently attached to the home are included in the sale. But, this is negotiable and therefore it should be specified in the contract prior to sale to avoid any confusion. Other non-permanent items can be negotiated as well, such as appliances, lawn equipment, and even furniture.
What is a contingency?
A contingency is a stipulation added to a real estate contract that would make the contract null or void if the condition were or were not to occur. The addition of contingencies to an offer ensures that the buyer (or seller) is protected during the purchase process. A buyer or seller is able to add any contingency to their offer, but it must be agreed upon by the other party. Examples of common contingencies added to contracts are: financing, inspection, appraisal, and the sale of the buyer’s current home or property.
What is the best time to buy?
The best time to purchase a home is dependent on both your personal life and financial status. Financially you should have enough money in savings to cover the down payment, closing and moving fees with ample savings left over to cover any miscellaneous or unexpected costs. In addition you should be at a stable point in your life where you don’t see yourself moving in the next five or more years and you are ready for the responsibilities of homeownership.
What is the difference between list price, sale price and appraised value?
The list price is how much the seller’s asked for when placing the home on the market, the sale price is how much the home actually sold for, and the appraised value is the worth a professional appraiser estimated for the home. Lenders often require an appraisal prior to closing to ensure the home’s value is not less than the loan amount.
What is the first step to buying a home?
Before even starting their home search, buyers should review their finances and set a purchase budget. In doing so, buyers must also get pre-approved for a loan to ensure they will qualify for a home within their desired price range.