In some instances, it may be beneficial to reject an offer to purchase your home. Because if a homebuying proposal fails to meet your expectations, you may want to wait for another offer to come your way.
Reviewing a homebuying proposal and determining whether to reject this offer can be tricky. But we're here to help you evaluate an offer to purchase so you can decide the best course of action and feel confident about your choice.
Now, let's take a look at three tips to help you assess an offer to purchase and determine whether to decline.
1. Review the Local Housing Market
The housing market in your city or town is a major factor in the property selling journey. If you're selling your residence in a buyer's market, you likely face steep competition to sell your house and maximize its value. Comparatively, if you're operating in a seller's market, there may be an abundance of buyers and a shortage of sellers in place.
Take a look at the prices of recently sold residences and how long these properties were listed before they sold. You may want to consider the prices of currently available houses in your area that are similar to your residence too. With this housing market data in hand, you can differentiate a buyer's market from a seller's one and take a data-driven approach to decide how to proceed with an offer to purchase.
2. Weigh Your Home's Strengths and Weaknesses
You believe your home is great, but you also realize that your residence is far from perfect. As such, it often helps to weigh your residence's strengths and weaknesses relative to an offer to purchase and proceed accordingly.
For example, if a homebuyer submits a competitive offer to purchase your home in spite of its exterior damage, you may want to accept this proposal. On the other hand, if a buyer submits a "lowball" offer on your recently upgraded house, you may want to decline this proposal.
3. Consult with a Real Estate Agent
If you're unsure about whether to reject an offer to purchase, there is no need to worry. You can always hire a real estate agent, and this housing market professional can provide comprehensive support throughout the property selling journey.
A real estate agent is ready to help you in any way possible. If you need help listing your residence and promoting it to prospective buyers, a real estate agent can assist you. Or, if you want to find innovative ways to enhance your residence's curb appeal, a real estate agent can provide home exterior upgrade recommendations.
Of course, a real estate agent will work with you to review any offer to purchase your house. You and your real estate agent together can discuss the pros and cons of a homebuying proposal and make a decision that corresponds to your house selling goals.
Take the guesswork out of reviewing an offer to purchase – use the aforementioned tips, and you can decide whether rejecting a homebuying proposal is the best option.
You probably know that in your home surface cleaning is much different than deep cleaning. Once you get the right spots down that need to be dusted, next, you need to vacuum up all of that dust and dirt. A well-vacuumed house is a happy house (and a dust bunny-free home!) The areas listed below are easy to miss, but once you get the hang of cleaning them, your home will be that much cleaner.
Between The Chair Cushions
Your kids may surf the couch cushions for extra change, but there’s another treasure to be had under there: plenty of crumbs and dirt. People eat on the couch and hang out there a lot. That means there’s dust, dirt, crumbs, hair, and more under those cushions of each chair in your home. Take the time to vacuum and get up all of the gunk.
You probably go up and down your stairs at least a dozen times a day, but do you always take the time to vacuum them? The problem is that it can be hard to find an outlet for the vacuum and it can be a pain to move the attachments in order to get in all of those nooks on the stairs. Your best bet is to use a separate vacuum all together on the stairs. Use a lightweight cordless unit to make your life easier.
Your windows and window treatments are most likely neglected. Take the time to vacuum these up the next time you have the vac unit out. Curtains and blinds can harbor a lot of dust that’s difficult to remove. Use the brush attachment to achieve squeaky clean windows.
You wipe your feet on it every time you come in the house, but o you remember to clean it? Start by shaking out the doormat outside to get loose debris off of it. You should take the time to vacuum up dirt and debris that collects around the doormat to keep anything leaves or dirt from entering further into your home.
This part of the house may be a less obvious place to vacuum. If your lampshade is dirty, the light won’t correctly shine through the lamp. Remove the lampshade then use a hose attachment to remove dust from the inner and outer portions of the lampshade.
The next time you change your bedding, flip your mattress, or the seasons change, take the time to vacuum your mattress. Dust mites and all kinds of things can be harbored in the mattress. It’s important to give your bed some TLC every once in a while.
If you’re hoping to buy a house in the near future, you’ll want to focus on saving for a down payment.
Down payments are a way to let a lender know that you are a low-risk investment, and a way to save money on interest over the term of your loan.
If you have your other finances in order--a good credit score and stable income--there’s a good chance that making a 20% or more down payment will land you a low interest rate that can save you thousands while you pay off your loan.
How large should my down payment be?
The larger the down payment you can afford, the more money you’ll likely save in the long run. While there are ways to get a loan with no or very small down payments, these aren’t always ideal.
First, if you put less than 20% down on your home loan, you’ll be required to pay private mortgage insurance, or PMI. These are monthly payments that you make in addition to the interest that is accrued on your loan.
So, if you don’t put any money down on your home, you’ll accrue more interest over your term length and you’ll pay PMI on top of that.
What affects your minimum down payment amount?
Lenders take a number of factors into consideration when determining your risk. If you’re eligible for a first-time home owners loan, a veteran’s loan, or a USDA loan, your loan can be guaranteed by the government. This means you can likely pay a lower down payment while still receiving a reasonable interest rate.
When applying for a mortgage, be sure to reach out to multiple lenders and shop around for the rates that work for you. Many lenders use slightly different criteria to determine your eligibility to pay a lower down payment.
Other things that affect your minimum down payment include:
Location of the home you want to buy
Value of the mortgage
Saving for a down payment
You’ll get the most value out of your mortgage if you put more money down. However, if you’re currently living in a high-rent area, it could mean that it’s in your best interest to get out of your apartment and start building equity in the form of homeownership.
If you want to buy a home within the next year or two, there are a few ways you can help increase your savings.
First, determine how much you need to save. Depending on your housing needs and the current market, everyone will have different requirements. Do some home shopping in your area online and look for homes that are within your spending limits. Remember that you shouldn’t spend more than 30% of your monthly income on housing (mortgage, property taxes, etc.)
Next, find out what a 20% down payment on that home would be, adjusting for inflation.
Once you have the amount you need to save, remember to leave yourself enough of an emergency fund in your savings account to last you a month or two.
As a home seller, it is important to do everything possible to make your residence an attractive choice for buyers. Because if your home stands out from the pack, you may be better equipped than other sellers to enjoy a fast, seamless and profitable house selling experience.
Ultimately, there are many ways to make your home an attractive option for buyers, and these include:
1. Perform Home Improvements
If your home has a leaky roof, defective heating and cooling system or other problems, there may be no time like the present to perform house upgrades. That way, you can transform assorted home weaknesses into strengths.
For home sellers who are uncertain about how to upgrade their residences, it may be beneficial to conduct a home inspection. This evaluation enables a home inspector to review your residence both inside and out. Then, a home inspector will provide a report that details his or her findings, and you can use the report results to prioritize home improvement projects.
2. Remove Clutter
If your home is full of antiques, furniture and various personal belongings, it may be tough for homebuyers to envision what life may be like if they purchase your residence. Conversely, if you eliminate clutter from your home, you can show off your living space's full potential to buyers.
Oftentimes, it helps to rent a storage unit before you list your residence. This unit will allow you to store a wide range of personal belongings in a safe place until your house sells.
It also may be a good idea to host a yard sale or sell excess items online. By doing so, you can simultaneously remove clutter and earn extra cash.
3. Boost Your Residence's Curb Appeal
Your house's curb appeal is a difference-maker in homebuyers' eyes. If your home boasts a pristine front lawn, flawless siding and other dazzling exterior features, your residence may stand out to buyers as soon as they see it. Comparatively, if your house has a messy front lawn, damaged siding and other noticeable flaws, your residence is unlikely to make a positive first impression on buyers.
Allocate time and resources to bolster your house's curb appeal – you'll be happy you did. If your home makes a positive first impression on homebuyers, you may receive lots of interest in your residence. And as a result, you may be able to accelerate the house selling cycle.
Lastly, as you search for ways to distinguish your residence from other available houses, you may want to hire a real estate agent. This housing market professional can offer expert recommendations and suggestions to help you enhance your residence. Plus, if you have any concerns or questions throughout the home selling journey, a real estate agent will always be available to address them.
Ensure your residence is an attractive option for buyers – use the aforementioned tips, and you can differentiate your house from the competition.