Buying a Home in Austin

Home for sale

We aren’t stuffy.  We aren’t high pressure.   And we don’t take ourselves too seriously because we believe buying a home can be both easy and fun.

 

Our goal is to apply our market knowledge to help you find the right home that meets your needs and budget.  Whether you are looking for the perfect home in a great school zone, building an investment portfolio, or searching for your dream home, you can count on us to give you candid advice and practical recommendations along the way based on our broker’s 21+ years of experience in the Austin market.  We focus on giving you an unparalleled level of personal attention and responsive service so that you can focus on making the purchase decision that is right for you.

The process for buying a home can be broken down into nine basic steps:

  1. Identify the long-term goal of your purchase.  The criteria for an investment property versus a permanent dream home are different.  We will help  you identify your objective and tailor your home search to meet those needs.

  2. Search for the right home.

  3. Negotiate with the seller to get you the best deal possible on the home you select.

  4. Inspect the home to identify any underlying issues or concerns.

  5. Re-negotiate the purchase price of the home, if needed, based on the outcome of the inspection.

  6. Finalize your home loan and homeowner’s insurance.

  7. Arrange to turn on the utilities in your new home, typically to start on the day your purchase contract is “closed.”

  8. Sign the paperwork to finalize the purchase at “closing.”

  9. SMILE – you own a home.

Not only is buying easy, it’s never too early to talk with us about your thoughts.  We are happy to help you at any stage of the process.

 

As you begin your home search, take a moment to review these helpful buyer links.

 

Using Option Money to Make Your Offer More Appealing to Sellers

You can make adjustments to your option money to make your offer more appealing to home sellers.

 

USING OPTION MONEY TO MAKE YOUR OFFER MORE APPEALING TO SELLERS

Most real estate contracts include a provision for an “option period.”  The option period is a span of time in which the homebuyer has an unrestricted right to terminate the contract for any reason so long as proper and timely notice is provided to the seller.   Because a seller takes a risk by including an option period in the contract, homebuyers often compensate the seller by paying for this right to terminate the contract.

When you buy the option to terminate the contract, the homeseller keeps the money regardless of whether you go through with the deal or not.  The seller earns this money in exchange for taking the risk of removing the home from the market while you engage in your due diligence and assess the home.   If you end up completing the purchase, the option money gets applied to the final purchase price.

The cost and length of the option period may vary, as it is one of the key negotiable terms of the real estate contract.  In a competitive real estate market, we sometimes increase the amount of the option fee and/or decrease the length of the option period to make your offer to purchase the home more attractive to the seller.

We typically recommend adjustments to the option money based on several factors:

  • How competitive is the overall real estate market at the time,
  • How likely is there to be competition for this particular home,
  • How badly does the seller want the house, and
  • What is the price of the home.

In a non-competitive situation, we may suggest putting down less option money.  In competitive situations, however, we often recommend that our buyers put down more so that the seller is more confident that you will go through with the deal.  Of course, the sales price counts too… But a large amount of option money often gives sellers a feeling of greater certainty that the deal is solid.

Does your agent know  when to put $100 down in option money versus $5,000?  We do.  Give me a call or send me an email if you want to talk about how Homesville can help you win in a competitive real estate market.  Read our other articles for more information about option periods, earnest money, and tips for first-time homebuyers.

Paul Reddam  |  Owner/Broker  |  Homesville Real Estate

512.300.2995

paul@homesville.com

© 2016

 

 

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