How to Bid on a Home

Video Transcript

"Hello my name is Alicia Lowther, licensed Real Estate professional with Realty Executives, and I'm going to give you some tips on how to bid on a home. If your purchase is not a cash offer then the first thing you'll want to do is talk to a lender or a mortgage broker. The reason is you'll need to know what type of financing you're going to have, what type of down payment, how much of a down payment is required, and also you're going to ask for a pre-qualification letter. The next thing you'll do is research the fair market value, you want to make an acceptable offer and not go in to low where it insults the seller and then all negotiations and possibility of negotiations ceases. What you need to do to or what I recommend is that you reduce to writing all of the terms that you're comfortable with. The terms that include things such as what types of inspections would you like to have performed, how many days are you going to do you need to have those inspections performed? Also how much escrow are you going to put with the third party, usual third party company to show your commitment to proceed with the purchase, and what is the escrow period, when would you like to close? Now all of this should be put into a contract and if you're not using a real estate agent I would suggest, encourage you to consult with a real estate attorney who will look out for your best interest and can also assist you with the close. And lastly present your offer and include your pre-qualification letter and you might also want to include a letter that talks about why you were interested in purchasing this specific piece of property. My name is Alicia Lowther, Realty Executives and we just covered tips on how to bid on a home."