Edward Williams' Blog
If you discover a house that you want to buy, it generally is a good idea to submit a competitive offer. That way, you can move one step closer to acquiring your ideal residence.
However, the hours after you submit a home offer can be stressful, particularly for a buyer who fails to plan accordingly. Lucky for you, we're here to help you stay calm, cool and collected as you wait to receive a seller's response to your offer.
Let's take a look at three tips to help you get ready to handle a seller's response to your homebuying proposal.
1. Plan for the Worst-Case Scenario
Even the worst-case scenario is not the end of the world for a buyer who is awaiting a seller's response to a home offer. In fact, if a seller rejects your proposal, you can always reenter the housing market and continue your pursuit of your dream home.
As you await a seller's response to your home offer, you should not stop searching for available houses. Because if you continue your home search, you'll have no trouble moving forward in the homebuying journey if a seller rejects your home offer.
2. Consider All of Your Options
If you submit a home offer and a seller says "Yes," what should you do next? Consider how you'll proceed if a seller accepts your proposal, and you'll be better equipped than ever before to enjoy a seamless homebuying experience.
On the other hand, it helps to prepare for a potential counter-offer from a home seller as well. If you are open to negotiating with a seller, you may be able to find common ground with him or her and finalize a home purchase.
3. Consult with a Real Estate Agent
A real estate agent knows all about the stress that is commonly associated with submitting a homebuying proposal. He or she can help you minimize this stress and ensure you can achieve the best-possible results throughout the homebuying journey.
Typically, a real estate agent will work with you to submit a homebuying proposal. This housing market professional then will keep you up to date as you await a seller's response to your offer. And if you have any concerns or questions during this time, a real estate agent is happy to respond to them.
A real estate agent will make it simple to streamline the homebuying journey too. For instance, if a home seller accepts your offer, a real estate agent will be ready to help you move forward with a property inspection and appraisal. Conversely, if a home seller rejects your proposal, a real estate agent will be prepared to work with you to help you discover another house that matches or exceeds your expectations.
The waiting period after you submit an offer on a house may prove to be a challenging time. Fortunately, if you plan ahead for this period, you can maintain your confidence and continue to move forward in the homebuying journey.
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If you're currently renting an apartment or house, it makes good financial sense to consider becoming a homeowner in the foreseeable future. There are pros and cons to owning your own home -- and it's not for everyone -- but for most people, the advantages far outweigh the disadvantages.
An exception would be if your job requires you to relocate frequently. In that scenario, the potential benefits of building up equity in a home would be greatly diminished.
On the other hand, if you plan on staying put for more than a few years, then the tax benefits and investment value of owning real estate could put you on a stronger financial track than if you continued shelling out your hard-earned money to a landlord. You've probably heard the argument before: "If you pay rent, you have nothing to show for it at the end of the year". However, when you buy a home, an increasing portion of your monthly payments is applied to your actual ownership of the property (as opposed to how much you owe the bank).
Tax Advantages of Home Ownership
In most cases, you can deduct all of your home mortgage interest from your federal tax returns, according to the IRS. More specifically: "The only costs you can deduct are real estate taxes actually paid to the taxing authority, interest that qualifies as home mortgage interest, and mortgage insurance premiums."
However, since everyone's financial situation is different and there is no "one size fits all" approach to financial management, it's always best to consult with an experienced CPA, enrolled agent, or knowledgeable tax preparer. There may be other tax benefits you could qualify for as a homeowner, too, including getting tax credits for installing a solar energy system. The government's Energy Star program says tax credits on new solar energy systems are available through the year 2021.
Getting the Process Underway
Two key steps to becoming a home owner are finding out your credit score and meeting with a mortgage lender to determine how much of a real estate loan you could qualify for. An experienced real estate agent can also provide you with a wealth of guidance and information on how to become a homeowner. They can fill you in on many of the exact steps, requirements, and advantages of buying your first home. A buyers' agent can also help you assess your readiness to take the plunge into home ownership.
In addition to finding out your credit score, which will impact your mortgage interest rate and the type of loan you may qualify for, other vital information can be gleaned from a detailed personal budget. Although the amount of rent you now pay will provide some insights into your potential house-buying budget, there are a lot of variables which will impact how much of a mortgage you could comfortably afford.
It’s easy to feel alienated when you move to a new city or town in today’s world. Traditionally, being friendly with neighbors was much more valued in decades past than it is now. And, with the help of things like Facebook and Skype, it’s easier to stay in touch with your old friends from your previous town than it is to make new ones in your new town.
There is, however, much to be said about becoming involved in your local community. You’ll meet new people, discover new places to explore, and can make new friends in the process.
So, how can you go about involving yourself in your new town? Read on for our advice.
Say “hi” to the neighbors
Meeting the neighbors can be beneficial in a number of ways. They’ll be able to give you the lowdown on your neighborhood, including any issues you might want to be made aware of.
They’ll also be able to tell you if they notice anything strange or concerning around your house when you’re at work. And, if you go away on vacation, a good neighbor might volunteer to take in your mail for you or water your plants.
Find local events
There are a number of ways to find out what’s happening in your new town and get involved with them. Some places we recommend that you check frequently are:
Local newspapers and magazines
Library and town hall bulletin boards
Facebook groups for your town
Craigslist community boards
You could also check out some local businesses, including cafes and restaurants, to introduce yourself to some of the people who likely live and work in your town.
Learn a new skill
One of the best ways to become involved in your new community is to find out what classes are offered nearby and to join one that you’re interested in. If fitness and wellness are one of your priorities you could consider joining a yoga or fitness class.
If you’re more into crafting, see what classes are available at the local library. And, while you’re there, ask the librarians for recommendations for local places to visit, whether it be museums or specialty stores.
Volunteer your time or skills
If you’d like to give back to your community a great way to do so is to volunteer for a local cause. Many cities and towns have neighborhood or park cleanups. Others have food pantries and assistance for the elderly.
If you have a skill that you think could be useful, such as carpentry or graphic design, find out if any local groups could use your skill.
Go to town meetings
If you want to quickly learn some of the ongoing issues and conversations in your town the weekly or monthly town meetings are a great way to familiarize yourself. Most towns and cities post their meeting schedule online and even offer recordings of past meetings if you want to get a feel for what the meetings are like before attending.
Other places that meetings are held that could be of interest are the local library, churches or spiritual centers, and parks or the town common.