Buying a home is one of the biggest decisions you will make in your life. You want to have the right place for your future children to grow up, and you want to be comfortable.
However, you do not want to bankrupt yourself while doing it. So, it becomes a tricky balance to figure out the right offer on a home, and you will want to have the help of a Columbus mortgage company at your fingertips to help you out.
In this market, it is especially difficult, with the price of houses going up 10% year over year recently. So, how do you make a competitive offer without going over your budget? Here are some tips you can follow.
One of the best ways to let a seller know you are serious about buying their home is to get pre-qualified for a loan from your local Columbus mortgage company.
This can work on loans like a conventional home loan, and it gives the seller more reassurance that you can afford to buy their home. The last thing a seller wants is to be worried about a sale not going through because a buyer realizes much later that they cannot afford the house.
Most sellers do not want to have their time wasted. Being pre-qualified for a loan greatly reduces the risk of this and keeps everybody honest.
Know Your Market
This comes down to how well houses sell in the area that you wish to buy. A house may stay on the market for as little as eight days, or as long as 58 days in a decent-sized city.
It is a big advantage to know the difference in your typical market. Obviously, if you are in a market where houses take longer to sell, you have more negotiating power.
The opposite is true in a fast market. You would have to make an offer that would turn a seller’s head, most likely over the asking price.
Find out more about your market such as how long houses in the neighborhood were listed for and the average price a house goes for in that area.
Think Twice About Contingencies
Depending on how fast the seller is looking to get rid of their house, this could make or break your offer being able to go through.
Let’s say a seller has two offers on their house for a similar price. One buyer is willing to buy it as is, while the other buyer wants to wait until they sell their house to pull the trigger on this one.
A seller will like the first option a lot more. If you are in a competitive market, reconsider what contingencies are important.
Do you need a home inspection? Do you need an appraisal? Are mortgage companies going to reject your loan?
These are the types of contingencies that can cause a sale to fall through and things that you may want to prepare before you make an offer.
Make an Offer on a Home in Columbus
These are just some of the things you should keep in mind if you are trying to make a respectable offer on a home. However, what if you are not sure if the advice above applies to your specific target home and market?
Contact us today to see if you are qualified for a loan and to get you one step closer to buying your dream home in Columbus, MS.