There are several stages of the home buying process. Learn how to make an offer, respond to a counteroffer, and accept a contract offer. Also learn how to handle a reverse contingency. After reading this article, you’ll be well-equipped to handle any real estate transaction. Whether you’re in the process of selling your home or are just looking for advice, this guide will cover everything you need to know about the process.
Making an offer
As a first-time home buyer, making an offer on your new home may seem like an intimidating task. While the asking price provides some insight into what the seller is hoping to get, you’re most likely trying to make an offer that will be the most beneficial to you. If you’re unsure of how much to offer, consider taking a step back and gathering information before you make your offer. Here are some helpful tips.
Making a counteroffer
When you receive an offer on your home, you may be eager to make a counteroffer. This is your opportunity to negotiate with the buyer and request a lower price or a different term. You can also request a home inspection to see if there are any structural issues with the property. The buyer may also want to reduce the price if they believe there are foundation problems. You must submit the counteroffer to the seller through your real estate agent.
Accepting a contract offer
Before accepting a contract offer on your home, make sure it meets your requirements. You may not be able to accept the offer unless the buyer sells their current home. Make sure you review the contract to make sure the seller understands the conditions attached to it. A common condition is that the buyer must sell their current home in order to purchase the new one. However, special conditions may be more specific and may require the buyer to obtain a survey of the property.
Reverse contingency
You’ve received a contingent offer from a buyer and have not accepted it yet. Now what? What are your options? If your buyer is not going to accept your offer, then you have two choices: Accept the offer or go looking for another home. If the buyer rejects your offer, you’ll have more options than you think. If you’re willing to accept the offer, however, you have to accept the conditions.
Time limits
In Michigan, sellers have a maximum of 24 hours to accept an offer on their home. If the offer is countered or rejected, the seller may have an additional period of time to respond. The time frame for a seller to accept an offer is also governed by state law. However, in most cases, the seller is not legally obligated to respond within these time frames. If possible, the seller should notify the buyer of any such limitations before submitting the contract.
Getting pre-approved for a mortgage
Before you accept an offer on a home, it’s a good idea to get pre-approved for a mortgage. Mortgage lenders will look at your credit to determine whether you will be able to afford the home. You’ll need to know how much you can afford each month to make the payments on time. Your total mortgage payment will include the interest, principal, and property taxes. These can easily put you over your budget.
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