When you’ve found a home or homes you like, we can start sending in offers.
What do we do first?
Usually the agent should check the values of similar homes in that neighborhood that have sold recently. These values and the analysis are called “Comps” or “Comparable Market Value Analysis.”
Why are “Comps” important?
Basically, we’re trying to double check that the house is not overpriced. If it’s overpriced, your bank (lender) may not lend you the amount of money you need for the loan. The bank is afraid that in the case you don’t pay your mortgage, they can’t sell the house and get their loan money back.
So what can I offer?
Based on the value of the homes in the area, we can make offers that feel comfortable for you. If you really love a house and want to pay an extra $5000 in down payment, you are welcome. But just be aware that it would be a little harder to sell and get your money back in the near future.
If you think a house needs too much in repairs, you are welcome to bid lower. We can offer whatever works for you, and see how the seller responds.
Possible Seller Responses:
- Acceptance: This is the best answer of course 🙂 If the seller accepts our offer, we can start escrow immediately if you still want the house.
- More will be explained in the next article regarding Escrow. If you change your mind and decide you don’t want the house by the time the seller accepts our offer, we can just cancel immediately with no penalty or worrying about putting any money in.
- Counter Offer: A counter offer is basically saying “Yes, we agree to your offer terms, but we want these changes”. At this point we can also accept, reject, or counter the counter offer. It can go back and forth sometimes.
- Rejection: This is just like it sounds. In this case, we can either present another offer, or move on.
Ready for the next step? Click here: Step 5: Starting Escrow
Need to go back a step? Click here: Step 3: Choosing & Viewing Homes
Want to start from the beginning? Click Here: Step 1: Setting Up Your Wallet
Thanks for reading! If you think this information is useful, please share it with a friend!
Leng Lim
Las Vegas Real Estate Specialists
702-343-2670