How to write an offer and real estate negotiations?

You have found the home of your dreams and it is now time to write your offer. It is becoming more difficult to determine the market value of properties due to fluctuating home prices, especially in neighborhoods such as American University Park, Columbia Heights, Logan Circle, etc.



How to determine the best offer price?

When determining the best offer price, there are some things to consider as follows:



1. Most recent comparable sales within last 3 months

2. Square footage comparison

3. Your Estimated Mortgage Payment

4. Number of days on the market

5. Previous sold price

6. Seller Closing help



I am a firm believer that it is important to have a detailed overview of the seller's situation to develop a comprehensive offer pricing strategy. This will prevent appraisal issues later in the transaction. Your offer price should be more involved than just about submitting a "lowball" offer because it is a buyer's market.



Why is no dc real estate transaction the same?

In each transaction, no situation is the same because there is a wide array of factors at play. The most important factor is the seller's willingness to negotiate. The seller's willingness to negotiate is directly related to the number of days the property has been on the market. TIME plays a sobering role in helping sellers accept the reality of a buyer's market.



Why are contingencies necessary?

Contract contingencies give buyers added protections and flexibility to overcome unforeseen obstacles during a transaction. As appraisal values and loan requirements constantly change, it becomes necessary to include these contingencies with all offers. The most common contingencies focus on home inspection, appraisal, and financing.



Why should buyers be flexible?

Buyers should always expect the seller to counteroffer all offers. There is always room for negotiation. Use the most recent comparables as a starting point, not only as a pricing ceiling. Here are some variables for negotiation as follows:



1. Amount of Earnest Money Deposit

2. Number of days until Settlement

3. Seller Closing Help

4. Contract Contingencies

5. Property taxes (ie. recordation and transfer)



Real estate negotiations are like playing POKER. You want the other person to know that you are a serious player w/o showing your cards. To make purchasing a home a more hassle-free process, the most important thing a buyer can do is to be informed about all of their homebuying options. Always keep in mind that your transaction is going to be different from anyone elses (ie. friends, family, etc.).







Hopefully you found this post useful! If you need help finding or selling your Washington DC home, please contact Jason Trotman at 301-452-4767. If you’re new to DC, I’d especially like to extend a warm welcome. I value the opportunity to help my clients find the home that meets their needs and provide them with professional, reliable service.