When you’ve found the home of your dreams, you don’t want to delay in producing your offer to purchase, so it’s a great benefit to know what to expect in advance. While there is no foolproof formula for negotiating a fair price, you can begin by looking at recent sales in the neighborhood and comparing their list price to their final sale price.If homes are generally selling at 5% below list, you have that starting point for determining your offer.
Once a price has been accepted, it’s time to put it into high gear by obtaining your financing, scheduling a home inspection, and establishing a closing date. Your offer should be contingent upon securing a loan and a satisfactory “walk-through” before closing.
Earnest money, or the “deposit” on your purchase, will be placed in escrow. It will eventually transfer to the sellers, or will be refunded to you if any unsettled issues prevent the closing of the transaction. If major repairs are needed, the seller may fix the problems, or offer a reduction in price. With such a contingency clearly stated in your offer, you can walk away from the deal if the seller doesn’t comply.
As these few considerations are the tip of the iceberg, your best bet is to always work through intermediaries, whose objectivity and experience help guarantee a smooth transaction.
Categories: Bennington VT, Buying, First Time Buyers