Making an Offer
Before the offer to purchase is created, it is very important that you have been at least pre-qualified or better yet pre-approved by a lender.
This is one of the best negotiating tools a buyer can have. It shows the seller that you are financially able to purchase the home. After you have found the right home, it is time to prepare the offer.
When you are buying a home, there are many problems that the seller is obligated to disclose. For example, in most states, it is illegal to withhold information about major physical defects on the property, but, these disclosures don't always paint the entire picture of the home. Here are six questions you may want to ask that can offer additional insight about the prospective home before you make a final decision.
1) Why is the seller selling the house? This question may help you evaluate the "real value" of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.
2) How much did the seller pay for the home? This question can, in some instances, help the buyer negotiate a better deal-maybe even get the seller to carry part of the loan. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.
3) What does the seller like most about the property
In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a "happening community," the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.
4) Can I take possession quickly or several months from now?
We usually need a minimum 2 weeks from removal of conditions to close the transaction without extra penalties.
Lengthy possession dates can be negotiated but the seller usually wants a larger deposit than normal to mitigate the risk. Typical closing dates are 30 to 60 days.
5) What about Conditions & Terms?
a. Conditions will cancel the contract if they are not waived.
b Terms are additional agreements that do not cancel the contract.
6) What conditions can I place on the Contract?
Buyers and Sellers can ask for any condition they feel is needed, but both the buyer and the seller are not obligated to accept.
We will guide you and recommend what condition(s) should be put on the contract based on the type of property and potential due diligence concerns that need addressing.
Typical conditions in residential Real Estate are as follows:
- Home inspection
- Review of Condo Documents if applicable
- Subject to probate
There are several people and personality types to consider, so emotions can be high for all parties. Negotiations can be fast or slow and involve 3 considerations:
- Process – Speed of decision making (slower/faster).
- Behavior - Relationship among the parties including cultural differences.
- Substance - Each party’s motivation & financial position.
Even though all decisions are yours to make its our job as professionals to provide advice along each step. Contact us today and will explain the process and show you how to buy successfully.