Dallas Real Estate: Preparing to Make an Offer on a Home

Feb 16
08:12

2009

 michael

michael

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Dallas real estate has enjoyed a positive reputation for the past five years. Even in this tough economy, the Dallas market remains somewhat strong. Home prices have fallen and the number of potential buyers are less, but people are still buying, and those who are in a position to make offers on homes now are seeing some of the area's lowest prices.

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There are hundreds of articles online and in public libraries on how to make an offer on a home,Dallas Real Estate: Preparing to Make an Offer on a Home Articles the financial status you'll need, and how to get the best deal.

First, negotiate price and terms, spot potential problems and complete your purchase. The Offer to Closing guide explains key points and pitfalls of each step, so you can be your own best advocate.

When you make an offer, you commit to one home. You sign a contract to purchase, which is legally binding if the seller accepts. You also write out your first big check for a good-faith deposit, which you can apply to the down payment at closing. The more carefully you research the market, the neighborhood, comparable homes, and current property values, the more quickly and confidently you can decide what price to offer.

Now focus on the facts. Are you making an offer that you can afford? Have there been, or are there, any other offers? What is the apparent condition of the property?
What contingencies, or conditions, do you need? If seller comes back with a counteroffer, what's negotiable? These are all questions you must answer before settling.

The best method is to start with your best offer. That means a realistic price based on market conditions and comparable listings. The closer you are to reality, the closer you'll get to closing. You will also want to save room to maneuver - Don't put everything on the table right away. For example, you may be willing to pay a higher price to close sooner, but that's a negotiating point to save for the counter offer.

Avoid obsessing about a small price difference - It may seem like a lot to you now, but over the life of your mortgage, that extra $1,000 is negligible for a house you really want.

Include an inspection contingency in your purchase contract. Many lenders now require at least a termite inspection as a condition for making a loan. You may also want to have the house inspected for property defects, lead, radon or other environmental hazards. Think of these evaluations as quality control. A trained professional may take several hours and charge several hundred dollars to do a detailed home inspection, but it will save you grief and money down the road. Some sellers have their homes inspected before putting them on the market, and make the report available to you.

Now is a good time to consider an investment in the Dallas real estate market. With this information in hand, you will have a better chance of getting a great home for the price you can afford.