Home Buying 101 in Bethalto, IL: Part 3 - What to Consider When Making an Offer

Part 1: Know How Agency Affects You discussed the importance of finding a real estate agent to represent you.

Part 2: Will the Car Fit in the Garage? is about figuring out what is important now in finding your new home.

After looking at several homes, you’ve found the one!  This is definitely where having the right agent representing you will prove to be very valuable. 

Not only will they review the contract and disclosures with you, they will also inform you about the contingency period, your rights and obligations, the escrow process, etc.  But before you write an offer to purchase, here are some things to consider:

• Your offer needs to be attractive if you want it to be accepted.  What is important to the sellers?  You may be surprised to know that it’s not always about the money.  Of course, every seller wants to get as much as they can, but things like the contingencies, closing and possession date may be of a higher priority.  Your agent can ask questions to try to find out what the sellers needs are.  

• Speaking of price – how much you decide to offer depends on a number of things.  Your agent trusted advisor should have done a thorough market analysis (or sometimes referred to as a CMA) for you to determine if the listing price is reasonable or not.  While there is a lot that goes into gathering and interpreting this data, the basic information should include what similar homes have sold for recently, current market condition and absorption rate, as well as the condition of the home you want to buy.  All buyers want a “deal” but you also need to be realistic.
• The negotiations begin now, when you are writing the offer.  Remember that this is only an offer.  It does not become a legally binding contract until the seller has accepted and signed your offer.  Waiting for the seller to make a decision can be harder than you think!  The seller will do one of four things, accept your offer, counter your offer, reject your offer, or ignore your offer.  You and your agent will discuss how to proceed.  While buying a home is naturally an emotional experience, it is critical that you not let your emotions take over at this time.  Know what your limits are.  As the gambler would say, “you have to know when to hold ‘em, know when to fold ‘em, know when to walk away, and know when to run.” (Now I’m showing my age!)

If your offer is accepted, the next couple of weeks will be very busy.  In Part 4 – I Have a Contract, Now What you’ll learn about home inspections and appraisals and deadlines, oh, my!

Real advice. Real answers. It's Real Estate simplified. Helping buyers and sellers negotiate and manage their real estate transaction successfully.  

For real estate help in the Bethalto, Wood River, Alton, Godfrey areas email Stacie at stacie@mybethaltohome.com