You spent months, or maybe even years, preparing to buy a house. You saved, you interviewed and signed with a Real Estate Agent, you chose a lender and went about getting your pre-approval. Now you’ve found the perfect home and you’re ready to put an offer in… and you find you’re not the only one. It’s a seller’s market and you find yourself competing with other buyers. What are your options? While you certainly cannot make the seller decide to choose you to sell to, you can take the extra step and write a winning offer letter.
The Earnest Money Deposit (EMD) is an important aspect of the house buying process. This deposit essentially indicates to the seller that you, the buyer, are serious about wanting to purchase their home. The deposit shows you are committed. Once the deposit is accepted by the seller, the property is then taken off the market, therefore the seller is trusting that the buyer is eager to move forward with the sale. Otherwise, the seller is losing valuable time and money by removing the property from active listings. It is also a safeguard for sellers, deterring buyers from making offers on multiple properties.
It is quite possible that either a Seller or Buyer might change their mind about the sale/purchase of a home. While it is more common for the buyer to try to back out, there are occasions when the seller might also have a change of heart.
Many first-time home buyers find that the perfect home is out of their reach. The house prices, along with the down-payment expected, closing costs and inspection fees are too much to consider, and that is why many start looking for the perfect fixer-upper instead. According to a survey done by Realtor.com, nearly 60 percent of first-time home shoppers that are ages 18-34 say they would consider a house that needs renovations. A key factor for this is likely the expense of buying newer, turn-key houses.
While the majority of American families are not necessarily in the position to pay cash for their new home, it is still worth looking at the cash versus mortgage options to better understand that there are actually pros and cons of each payment method.