One of the easiest ways to save money is to negotiate with the seller. While you don’t want to lowball the seller and offend them, you also don’t want to offer full price, either. One way to get around this is to offer a range rather than a specific number. When making your initial offer, provide a sheet listing the needed repairs, the lower end of comparable sales in the area within the last three months and a pre-approval letter for the amount offered. Never show a pre-approval letter for more than you are offering at that moment. For example, if you are offering $275,000 on a $300,000 house and your pre-approval letter shows you qualify for the full $300,000; guess which amount the seller is going to want.

In additions, once that offer has been accepted and the inspection is complete, use that as a way to further negotiate. Also, look and see about seller contributions to closing costs. These are usually not offensive to the seller and you could save up to 3%.

Another way to save money on the cost of a home is to further reduce your closing costs by closing during the right time of the month. Say, for example, the interest is $50 a day and you close on the fifth of the month. You will have to pay interest from that day until the end of that month which could be well over $1,000. If, however, you close on the 25^th of a month, you can reduce this cost to just a few hundred dollars. Don’t, however, close on the very last day of the month in case an extension is needed for a few days.

Finally, be sure to zip your lips and keep your emotions in check when looking for a house. Don’t reveal too much information about yourself as it can be used against you. Also, be sure to conceal any pressure that you might be under to find a house right away. The seller will use that information to drive the price up. In addition, while you do want to show some emotion with each house that you see, you don’t want to get too over excited about any one. This tips your hand as to which house you like the most and can put you in a losing position when it comes to negotiations. Always have another house that you would like just as much if the first one does not work out. Finally, don’t be talked into making an offer. Only do so when you are ready and make that first offer 15% below the asking price. Remember that the first offer will dictate what you pay in the end.

When you make an offer, it needs to contain other information in addition to the price that you are willing to pay. It must also include any terms such as if the seller is willing to pay any closing costs. It should also provide a target date for closing, the amount of earnest money that is to be deposited, how the real estate taxes and other bills are to be adjusted between the buyer and seller, provisions as to who will pay for title insurance and survey and a time limit after which the offer is no longer valid.

An offer on a house should also make clear and contingencies. These are such things that say the offer is only contingent upon other events. These other events can be such things as the buyer selling their house in order to have the funds to purchase a new one or the buyer being able to obtain specific financing. If these things do not happen, then the buyer won’t be bound by the contract. Another popular contingency is a satisfactory report by the home inspector. For example, the seller must wait a certain amount of days to make sure the inspector submits a report that the buyer can live with.

When you submit an offer, be sure to do so with plenty of room for negotiations. You will find yourself in a strong position if you are an all-cash buyer, have already been pre-approved for a mortgage or don’t have a home that has to be sold before you can purchase a new one. Also, check to see why the seller is getting rid of the house. It may be that the house is vacant and eating up money each month. Or the seller could be in the middle of a divorce and wants out as quickly as possible. All of these factors work in the buyer’s favor as you may be able to make an offer much lower than the asking price and have it accepted.

Upon making an offer, it becomes binding if the seller signs and acceptance just as it stands. However, the seller may want to make some changes and at that point, the buyer receives a counteroffer. The buyer can then reject or accept the counter or make a counter to your offer. Any time there is a change in terms; either side can accept or reject it. You can even take back an offer up until the point that it has been accepted and you have gotten notice of that acceptance.

From the resource: “You’ve found it, the perfect house. Now the real stress begins, to move forward you have to make a written offer. This piece of paper is a contract between you and the seller that will lay out the terms of the transaction. Mistakes in your offer could end up costing you big money so it’s important to get it right. Let’s look at some key issues when making an offer on a house.”

Source: M is For Money

Read More About Making an Offer on a Home at Newbuyer.com

Source: Freddie Mac

Read More About Making an Offer on a Home at Newbuyer.com

A sample from the resource about earnest money “Once you sign the contract, make sure to have the inspection, survey, and appraisal performed quickly, or you can lose your earnest money.”

Source: Michael Blue Jay

Read More About Making an Offer on a Home at Newbuyer.com