Making an offer on a house isn’t the easiest feat. Whether you’re looking for villas or apartments for sale in Dubai, you need to do your best to get your offer noticed. The good thing is that there are lots of ways to make strong offers that can turn you into an instant homeowner.
Here’s how to get down to it:
1. Know how the whole home offer process works
You definitely would want to know what to expect, so here’s the usual flow as your guide:
a. The agent sends the offer you made to the seller.
b. The seller either accepts the offer, declines it, or makes a counter-offer.
c. If it’s a counter-offer, you can either accept, decline, or counter again. The negotiation goes back and forth until both parties agree or someone chooses to walk away.
d. If you reach an agreement, you both have to sign the purchase agreement and get into a contract. The contract’s period of time serves as the contingency period, and the appraisals, inspections, and others that are mentioned in the agreement will follow.
2. Choose a starting price (Ask your agent’s help).
The agent can help you start with a good, competitive, and fair price. The things to consider are your budget, the situation of the seller, the local market, the house’s condition, etc. You can ask questions to your agent or do your own research in the process.
3. Set your contingencies and other offer details.
Regular contingencies include appraisals and home inspections. This can help you have the chance to walk away or go for renegotiations if the house has hidden issue or not as worthwhile as you thought. Again, your agent’s help and expertise can go a long way here.
4. Decide how much money to put in escrow.
There should be an earnest money deposit that shows you’re serious about the offer. The bigger the amount you place in escrow, the more your offer stands out. It’s usually 1-3% of the selling price. If the offer is chosen, deposit the money using an escrow account. It’s a special type of bank account that neither the seller nor you can access until the deal is closed.
5. Consider including a house offer letter.
Especially if the housing market of the area is competitive, sellers get to receive many offers. In order to stand out further, it’s best to go the extra mile and write a personal letter letting the home owner know how much you appreciate their property. This is a good way to acknowledge and tap into the seller’s emotional attachment to the property.
6. Send your offer.
Have the agent deliver the offer once it’s ready. While waiting, pat yourself on the back. You’ve done your best and whatever happens, if you don’t get the property, you’ve got a whole new set of learnings and experiences to do much better the next time around.