When you make an offer on a home, you put in motion a request to purchase the home at a negotiated price and terms with a promise to do all that is necessary to fulfill the purchase agreement, as it is written if the offer is accepted, and closing the escrow within the estimated time that is agreed upon.
Once your offer is accepted by a seller and an escrow is opened, both parties are expected to make an all out effort to bring the escrow to a successful closing. At that time, you, the buyer, will take legal possession of the property.
There are several things that you should consider before making an offer on a home. First of all, you should make sure that you are able to make the monthly payments. Although you should sit down with a lender and have them go over your income and credit with you, keep in mind that it is you who is going to have to make the payments every month.
You should never feel that you have to buy the maximum priced home that a loan officer, or your realtor, tells you that you can qualify for, even if you know that you can afford it. Don't feel pressured and always look within the price range that you feel comfortable with. If you think that you are being stretched a little too thin with regards to your income, scale down your ambitions.
•Many people go through foreclosure because they chose to take on more of a mortgage payment than they can afford.
•Speculation is great for investors who have resources to fall back on, but most people don't have that luxury.
•Take your time in locating the property that you like and make up your mind about the property before you make an offer on it.
Preview the home, and the neighborhood, before you make an offer. You may want to look at it more than once, and if you need the input of a friend or family member to make a decision, take them with you the first time you go to see it. It is very discourteous to all involved in the transaction if you decide to bring a friend or relative to see a home after you have been in escrow for a while and then let them talk you into backing out of the deal because they don't like the property. If you need a second opinion, take the friend or family member to look at the property before making the offer.
Don't make an offer based on what you have heard about a property or by looking at pictures of it. By submitting an offer, sight unseen, and then finding out that you don't like the home at a later date is a waste of the seller's time, the realtor's time, and your time. By tying up the property and backing out later, it gives the appearance that you are playing games and it may hurt the chances of others who are serious about buying that particular property.
If you think that the property is overpriced, ask your realtor to run comparables on it. Don't shy away from making an offer that is lower than the asking price. You may not get the property at your offer price but a counter offer with an agreeable price can be negotiated between you and the seller. Don't let your realtor talk you into making a full priced offer, or an offer that is above the asking price, unless you are relatively sure that there are other higher offers, you really like the property, and you think that the property is worth the overbid.
•Note: Getting comparables should not cost you anything because most realtors can get comps for free from the title companies they use.
Although the real estate market changes on a daily basis, the basic principles of buying and selling real estate hasn't change that much over the years. But with internet access, email, and other computer related standards, locating and making offers on homes and other property has become easier for buyers.