It is quite common. We fall in love with a home, but unfortunately it doesn’t fall in our budget. It gives rise to another anxiety- Whether the seller will pay heed to your binder or just brush it off? There are some ways which you can implement to get the most out of your binder and get it secured.
First off, you need to know what actually a binder is. A binder is a preliminary contract locked by the exchange of earnest money between the buyer and seller to purchase the real estate. A list of binders made is often listed in writing when making a property purchase with the help of a real estate agent. Make sure, you are offering a reasonable number. The seller might feel offended by seeing an irrational price. Around 10% lower than the asking price will be good to go.
Your realtor is the one who can truly help you set a sensible binder by hunting properties in a right location. They will also inspect the home to find a negative aspect which can take the deal to an optimistic point. One more thing, it is better off to neglect the homes which falls outside your budget and stick to a financial decision than being emotional.
Taking the earnest money and the desired method of payment in account, the binder will be offered on the word of a seller. The earnest money can be in form of a binder check which can later on used to approve your home loan. You will also be provided with an option to leave the deal if the inspection pops up with some severe troubles or in case your bank budget does not makes it. Note, you should state in the binder the amenities you are looking for in a house or the fees you wish the seller to pay at the time of closing the transaction. You can also mention a timeline when the seller has to rejoin.
Once you have prepared a binder, the seller may accept the offer, refuse the offer or come back with a counter offer. If the seller is interested to sell you the home, the asking price would be no more than your offering price. The seller may take his time to set the most wanted counter offer. If your wait only results in silence, it’s a hint that you should go to the next deal.
Sometimes you can negotiate with the seller to pinch few things like repairs, repaint or closing costs in the home parcel if they are not in the favor of changing price. It also depends upon the availability of property listings in the market.
Being a human, it has always been tough for us to keep big financial decisions away from emotions, especially when it’s the time to bid for a home price. Besides that, you should rather take it as a business deal and take it in a positive manner. Hope you win your deal!
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