You’ve Found “The Home.” Now What?


The long, tiring search is over and you’ve kissed a lot of frogs. You've finally found your dream home and want to make an offer on the property. How do you know how much to offer and if you’re getting the most value for your money in this Brandon MB market?


The offer phase of purchasing a home isn’t always straightforward and you need to at least know the market on homes in that area so you can determine if you’ll be getting the fair market value for that home. Ask your real estate agent to go through neighborhood  comparable actives and solds with you.  This report should be helpful with the offer process.


Lowballing is a common term in the world of real estate. It means that you’re offering to buy the house for a number that’s far below the market value. You run the risk of insulting the seller and losing the home for good.


But, if you don’t know the fair market value of the home you could overpay by thousands of dollars. To zero in on the market value of the home you’ve chosen, you should know if you’re in a seller’s or buyer’s market.


A buyer’s market means that there are plenty of homes for sale, but a shortage of buyers. This gives you more power to bid lower than the asking price and to even ask the seller to pay for some or all of the closing costs. In a buyer’s market, you’ll find the seller more willing to negotiate.


If you’re in a seller’s market, there is a shortage of homes for sale and you’re likely to have several potential buyers making offers at the same time. A seller’s market is a little tougher to negotiate in because you may need to compete with other buyers.


It’s sometimes devastating to a potential home buyer when their good-faith offer is rejected – especially without a counter offer. This could happen when the seller receives many offers and your offer was much less than the others. Or, the seller may back off of your offer to see if he can eventually get a better one.


All may not be lost, even if your offer has been rejected by the seller. The seller may not have accepted any offer on the home and you may still have time to negotiate by moving rapidly with a higher offer. This may result in a bidding war that your real estate agent will need to help you with.


A buyer’s agent is extremely helpful if you’re a first-time home buyer. He or she will be familiar with the local market and be able to negotiate the best deal on your behalf. You’ll learn a lot during this process, which may be helpful to you when you decide to sell.


If you’re working in a seller’s market and there’s a real shortage of homes in the area, you may still be able to get your dream home. Find a home you really love in an area you’re interested in and write a letter to the homeowner.


It’s a true leap of faith to try this method, but it’s worked for thousands of buyers and it just might work for you. Even if you receive a “not interested” reply, at least you’ll know you tried.


Never rush to make an offer in any market until you’re sure the home is right for you. Unless you do the proper research on the home, you may be rushing in to a situation that you’ll later regret.


Whether you live in Brandon MB, Virden MB or you're searching for acreages in these surrounding areas, the search can be strenuous and time consuming.  You can call on me to be your trusted go to REALTOR®, with insight on all new listings and recent home sales, within our local real estate market.

Homeowner Checklist: Your Guide for Buying Your Dream Home


The things that run in your head are as big as the house you are looking forward to calling your home. You can’t wait to take a tour and see the neighbourhood. But after the excitement of touring and cherry-picking the best property, you are left with the biggest decision of whether to buy it or not. What’s the next step? How long will it be before you are holding the set of keys and opening the doors of your new home?


As a first-time homebuyer, you need to know the basic steps in buying your very first home. Consider hiring a home value estimator to guide you in making an offer—they are one of the few professionals you will need to consult with during this process. 


Below is a checklist of what you need to look into before making the final decision.

Work With an Agent or Realtor

It is wise to get a realtor on your side to help you narrow down your choices and find the right home for you. As experts in buying and selling properties, realtors can guide you through choosing a house and all the complex steps involved in the process of buying it. 


What’s best with having a realtor with you is you are assured that your best interest is their priority, and your budget preference is at the top of their list!

Decide on Your Budget

You need to determine how much you can afford by identifying your debt-to-income (DTI) ratio. This is how lenders gauge your ability to pay back your mortgage loan. Basically, your amount of debt is compared to the amount of your income.


You can calculate your DTI ratio by getting the sum of your current monthly expenses such as rent, loan payments, credit card dues, etc. Your monthly payables that vary in amount should not be included in the sum. After getting the sum, divide it by your total monthly pre-tax income. If you have a high DTI ratio, you may have a difficult time getting your loan approved.

Partner with a Mortgage Lender and Secure a Preapproval

Now that you understand your DTI ratio, the next step is to partner with a mortgage lender and get preapproval for a mortgage loan. When your loan is preapproved, the negotiating process with your potential seller will go much more smoothly!

Search for Your Home

You can now get to choose a home based on your working budget. You can ask your realtor to look for homes for you or suggest some properties and schedule you for a view. When viewing a property, don’t be content with just looking at the house superficially. Check its parts to see if they are working well. Test the electrical system, check the plumbing, ask about the roof’s condition, you know the drill.

Make an Offer

If you think you have found the one, make an offer. This is tricky, as it can be hard to gauge the exact amount you will offer. This is where your realtor steps in. Realtors usually compare sales data and other property values to help you come up with a reasonable price offer. Your realtor will take care of presenting the offer to the seller.

Get a Home Inspection and Appraisal

When the seller agrees on the offer, the house is yours! The next step is to conduct a home inspection to check the property from top to bottom and an appraisal to get an estimate of your home’s value. 

Closing

The last part of the process involves the signing of documents for your mortgage and all legal papers. After a successful property title transfer, you can now move into your dream home!

Conclusion

Arming yourself with the correct information when house hunting is the key to finding your dream home. The steps mentioned above will surely do you good in your quest for your home. So, choose wisely and seek the help of a realtor to help you make sound decisions.


Buy or sell a commercial property with the help of a realtor. Chris Low is here to help. Whether you want to see a listing in person or just have a simple question, you can contact me at any time. Reach me through email: chrislow@remax.net or phone at (204) 573-5699.

 

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