When looking at homes for sale, you want to understand how the entire process works, and that includes putting in an offer. When you find a house that you know with 100% certainty you want, then you want to put in an offer that you feel has a great chance of being accepted. However, sometimes there is a lot more that goes along with putting in an offer than simply making the decision and telling your agent. Here are some of the things you want to understand about how offers work:
Just because you put in an offer doesn't mean it will be accepted
You may fall in love with a house and decide to put in an offer you feel will be accepted by the seller only to be surprised when it is turned down. There are a lot of reasons an offer may be rejected and a few of those include:
- You offered an amount lower than they were asking and they don't want to go lower
- Someone else beat you to it and made an offer that they just accepted
- They decided at the last minute to raise the price
- They decided at the last minute to pull the house off the market
Keep in mind you can always find yourself in a bidding war
When you make an offer on a house, someone else can come along and make one for a higher amount. You may then be given the opportunity to put in one higher than theirs. This is known as a bidding war, and if you aren't careful, then you can find yourself getting caught up in it and paying much more for the house than you wanted. It's always a good idea to regroup and take a moment to make sure you are thinking things completely through before you follow up with another offer.
Having your offer accepted is still just the beginning
Having the seller accept your offer is great and gets the ball rolling. however, there is still a process that you need to make it all the way through before you actually own the house. For example, the house needs to go through final inspections and you will need to complete the entire escrow process before you are the rightful owner of the house. Once escrow has closed, then the deed, the keys, and the house will finally be all yours.