How to Make a Good Offer on a House

A house is typically the largest purchase a person makes in their lifetime. The expense can be overwhelming and it is common to have doubts about whether it is the right move for you at the time. Making an offer on the house of your dreams is the first step in becoming a homeowner; you want to submit a fair, but competitive price without spending more than necessary. This is particularly important during hard economic times, when budgets are tight and the economy is unstable.

Instructions

- 1
  Talk to your bank or other lending institution to get a pre-approval on a home loan. This gives you buying power because it shows the seller that you are serious about purchasing a home and that the loan will go through without any difficulty.
- 2
  Study the sale prices of homes in the area where you want to live. Real estate agencies and lending institutions are privvy to this information and it helps you to offer a price that is fair to the homeowner, yet not too high.
- 3
  Hire an inspector; he's a specialist that knows how to look for problems in a house, from the foundation to the roof. Typically, it costs about $300 to $500 as of November 2010 to hire an inspector, but his findings are vital in deciding the offer you want to make on the home.
- 4
  Read the report from the inspector. If he finds problems with the wiring, flooring, plumbing or in other areas, you can request that the home owner make the repairs before you agree to buy it or that they accept a lower price so that you can make the repairs yourself.
- 5
  Sign a contingency plan. This is a legal document that protects you from any financial obligation to purchase the house if the conditions are not met. Items that may be necessary in your contingency are that you are approved for a loan based on your terms, your attorney approves the contract, the home passes inspection and that you get the final approval on the home after certain conditions are met.
- 6
  Add other contingencies if necessary. For instance, if you already own a home, you can put in the contingency that your home must sell before you buy the new one, otherwise you may be stuck with two mortgages. It is important to add things contingencies such as the house meeting builders' codes if it is a brand new house, or that the appraisal price is the same or above the offer you make. Timing also is an important consideration regarding completion of the sale and this can go in your contingency agreement as well.
- 7
  Start low on your sale price. If the market is glutted with many homes for sale or the economy is bad in your region of the country, this is one of the best bargaining tools for a lower price. They will either accept it, come back with a counter-offer, or consider other offers if any exist.

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