Make an Offer They Can't Refuse

How to Increase the Chances of Closing a Home Buying Deal

There are ways to enhance the chances of deal closing while buying a home, once the seller has agreed to your offer. A real estate agent will guide you at this point, but if you are going through the home buying process on your own, you would do well to go through the following – it will help you speed up the process of concluding your property deal. You should have a sound grasp of the following terms.

Counteroffer
Sometimes the vendor of a property will agree to the first offer made by a buyer, but more often, the former will make a counteroffer with slightly different terms. This offering and counter-offering goes on until the deal is made or given up.

Contingencies
Agreement to the sale can come with certain conditions – for example, the purchaser’s house being sold. Generally speaking, you should include at least two contingencies in your offer – one, that the property is approved by an inspector, and that the contract is accepted by a property lawyer.

Acceptance
When the vendor of the property agrees to strike a deal with you, take steps to ensure that your home buying process is concluded in good time.

Earnest Money
This refers to a cash payment that serves to assure the vendor that your offer is serious and underlines your intention to purchase the house. Earnest money is a sum generally determined by the vendor of the property. You can bargain to try and get a lower sum, but the usual practice is to set it at 1% of the price the property is sold for. Once the deal has been concluded, the earnest money you have paid goes towards your down payment. Until then, it is held in escrow with the vendor’s property broker.