How to evaluate a price offer
Your main objective when selling a house is to secure the best possible deal. This often goes beyond the simple amount of the price, as there are some other elements that you need to take into account when deciding if an offer made for your house is really a good one or not. The financial security and status of the buyer needs to be carefully analyzed. In the event that you have more than one offer for your price, it can be a good idea to seriously consider offers that are not the best price-wise, but offer a greater financial security. A buyer with a full cash payment or one that has a secure and proven financial track-record may be a better choice than an a greater offer which might put you at risk.
Let’s go down to the most pressing concern – money. When you start advertising your house, you already should have an asking price and a minimum price in mind. If your house has a high market value, you’ll most likely get what you’re asking for. Or, if you own a house in a particularly popular area, you might even get several offers beyond the initial asking price. This is the ideal situation, but you shouldn’t outright count on it.
If however you are getting an offer for a lower amount than you have been expecting, you need to consider some aspects before declining. Is the price offered to you fair? Check houses with similar positioning and structure and compare asking prices. The offer might not be very bad after all.
Think about how long you have been advertising your house as well. If the house has been on the market for a very long time, it might be a good idea to take the offer into account. On one hand, there’s the possibility that you won’t get another offer as good in the future. On the other h...
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... procedure would be half of the down-payment when signing the purchasing agreement and the other half at closing.
4. Evaluate the financial contingency of the buyer. If you’re getting paid in cash fully, this topic won’t concern you. However, this is less likely. Most of the time, buyers get loans to pay for a house, so you need to make sure your buyer is capable of obtaining the loan. A serious buyer will have a pre-approved loan waiting, with an amount equal to or greater than the established price. If this is not the case, find out when the buyer will be receiving the financial loan. The sooner, the better.
5. Lastly, make sure that the person buying your house has the necessary funds to complete the transaction. A good credit score or the fact that the buyer himself selling a property are good indications that he is prepared to support the costs of buying.
With that in mind, it is important to understand a couple of concepts before analyzing and determining the effectiveness of that document. Although people do not always realize it, the purchase of a home is one of the b...
An employee of ABC Company, Luke is in charge with a project of developing new purchased land. The company is planning to build an adult entertainment retail store which confidently lay near where his brother, Owen, lives. If the plans are announced to the public, the property of the surrounding neighborhood will drop significantly. What concerned Luke is that Owen just told him about the offer to sell his house at a decent price compared to the current real estate market. However, Owen is considering if he should wait for a couple year and sell his house later at a higher price as the estate value may increase.
200% profit. The market value of a specific home when purchased is $300,000 and rises over a certain time to $350,000. The individual pays more than 2/3’s of the payments before foreclosure occurs. The specifics of the foreclosure are uncertain; however, this will not affect the resale of...
{Most people have some style and neighborhood preferences which can influence their decision when purchasing a new home.|If you are looking for a new home, chances are you have an idea of what type of neighborhood you want to live in and your preferred style of home before you even begin your search.|More things to consider when you're looking for a new home are the type of neighborhood, schools and home style preferences that you have.} {You can find out about most of this information through online searches, ads in newspapers or by contacting real estate offices.|You can find out a wealth of information by contacting real estate ...
Leasing may also be a better option if you don’t have very much cash saved for a down payment. Usually a leaser requires a “drive off” o...
At the present time I am a first time home buyer going through the process. I can tell you
Whether you are a first time home buyer or a seasoned home buyer, it is important to be aware of the requirements, policies and procedures that could potentially assist you with your home buying needs. As frequently evidenced, the housing rules keep changing. The government keeps proposing new funding programs and the stipulations that need to be met by buyers are ever changing. Staying abreast on these details will help ensure you have a smooth and valuable home buying experience.
“Hot off the press! Get your guide on what not to do when purchasing a home.” I wish I had a guide like this one before I purchased my second home. I had warning signs all around me that I chose to ignore. The only thing I knew for sure is I wanted a four bedroom two car garage and I was going to get it anyway possible. Later I received a crash course on the grueling process of going through a short sale and all the stress it puts on your relationship. Though losing this home, I learned not to take on more than I can handle. This is important because it can put a lot of pressure on your marriage, family and you.
Buying or selling a house or an apartment is one of the biggest decisions of a person’s life. And when selling or establishing a price for real estate, people seek out real estate agents to do the dirty work. A real estate agent has to convince a prospective homeowner that he or she is trustworthy and knowledgeable. In many ways, the agent acts as a counselor to individuals and families about to embark on a huge commitment. Real estate agents have a thorough knowledge or real estate market in their community. They
A very good strategy to start with is the “rent to own” option. In the rent to own process the potential buyer basically rents or leases the home for a set period of
When having an offer, the candidate is better not to accept it immediately. The candidate should express the interest and consideration of that offer. Finally, it is vital to keep a good relationship between the two parties during and after the negotiation. If the candidate approaches the negotiation aggressively, he or she may get immediate benefits, but there are potential problems in the long term.
With 10 different principles of economics, one can apply in a decision to buy a house. One at the top of the list would be that of trade-offs for which an individual will encounter. Every single choice comes at a price especially when purchasing a new home. Such is the case when choosing to buy a home exhausting an individual of a sizable percentage of their sa...
You wouldn’t choose a house a house near a busy highway or in the “rough part of town”. You choose a location is the foundation of buying a house. Similarly, when looking for a child to adopt you are obligated to find the right agency from the area you desire to adopt from. After you find the right location or agency, you start your search. By law, the real estate agent has to legally disclose everything wrong with the house. Much like how when looking for a child they inform if there is any medical conditions or past abuse with the said child. By being up front you know what you will be responsible for. When you finally find desire you make your
The first step to buying your home is assessing your financial situation. A person must evaluate how much exactly they can afford and borrow. Most people hire a real estate agent to find a home. A real estate agent can help in finding different homes that suit the person’s needs. At the Department of Housing and Urban Development’s website, “You'll want to start searching for a broker as soon as you decide to buy a home. Talk to several and find someone you think you'll be comfortable working closely with”(1) Having a wide range of options is always helpful. An agent can also help in negotiating the price, and showing what the potential buyer needs after finding a home. A buyer might also need the services of a lawyer, a loan officer, insurance agents, and an accountant. In all purchasing your own home is a daunting task if you plan on doing it alone.
Buying a home is more complex then most think. A purchaser of a home doesn't pay in cash when buying a house. If that were so, then nobody would be able to afford one. A potential buyer must get a loan. The bank doesn't lend their money to just anybody, so there are prerequisites before a buyer should consider buying a home. The potential buyer must have enough money for a down payment which is 3% to 20% of purchase price, a steady job with for at least two years or more, must have a decent credit score with at least a 640 or better. That is standard for the market. (1) The credit score is based on the FICO score. FICO stands for, Fair Isaac Corporation, a company that has been in business since the early 1950's and monitors consumers' credit ratings and put a scoring system on it. (2) Conventional loans are usually financed up to eighty to ninety percent with a down payment required of ten to twenty percent. The potential buyer must also have a debt ratio not exceeding 28/39 of their income. The first number 28 refers to your new mortgage payment that cannot exceed 28% for your gross combined income and 39 refers to your mortgage payment plus revolving and installment debt as well as taxes and insurance cannot exceed 39% of you total combined gross income (3).