Are there any set precedures to follow when putting in an offer for a house?
The first thing you should do is get preapproved (i.e. not prequalified, but preapproved) for a mortgage loan. This will show the landlady that you are serious about the purchase. In other words, if she knows that you can get a mortgage, then your offer is more credible. Next, you should make an offer on the property for the lower price. You need to make the offer in writing. In many states, there is a standard form used to make offers (call a Realtor to find out). This standard offer letter typically will reserve certain rights for the buyer and seller. For example, you have the right to an inspection, as well as the right to an attorney to review the contract once the seller signs it. Remember that you will also want your attorney to hold the downpayment in escrow. The more you say you are willing to put up as downpayment, the more serious your offer will look. When negotiating over price, remind the seller than she will be avoiding a 6% sales commission worth $9600 on $160 thousand.
