Navigating Home Ownership – Part 4, Buying A Home
When putting an offer on a home, there are a few things to consider aside from price
Timing – If you like a home but are not planning to offer list price, it is usually advisable to wait a few days after it comes on the market to make an offer. The seller has put time into considering their price and they are unlikely to budge right off the bat. If you are willing to risk the home for the right price, it can pay to wait out an open house so they can see for themselves that their price may be too high.
Credit – It’s not uncommon to ask the buyer for a credit to help with closing costs. However, realize that this is money out of their pocket. If you plan to ask for a credit, you might have to raise your sale price offer. On the buying side, having funds credited at closing can make a big difference with the down payment and other costs but when you’re selling, it’s all the same!
Home Inspection – Only in very uncommon situations would you waive your right to a Home inspection. This is an opportunity to go through the home with someone whose job it is to find every viable issue. A good home inspector will categorize your issues into urgent, big, and small issues so you can decide what to ask for. If the home is in very good shape, it’s still good to ask for multiple fixes as they will usually counter with fewer.
Home Sale/Settlement – If your home is still on the market or under contract, you should consider adding this contingency as it will give you an out if you are unable to sell or settle on your home. Without this, you could have a large risk of carrying two mortgages if you are unable to sell your home.
In very competitive markets, it’s common to waive these contingencies but if you do, you may want to wait to put your offer in until you have cleared some hurdles with your own home sale – such as the home inspection.
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting, realty or tax advice. This information is not intended to be a substitute for specific individualized legal, realty or tax advice. We suggest that you discuss your specific situation with a qualified investment, tax or legal advisor and/or licensed realtor. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or strategies may be appropriate for you, consult your financial advisor prior to implementing a strategy. No strategy assures success or protects against loss. You should consider the investment objectives, risks, charges and expenses of any investment carefully before investing.