Welcome once again to ActiveRain, the cutting-edge clearinghouse for current resources on all things real estate. My name is Rich Jacobson, a licensed professional real estate agent in Silverdale, out on the Kitsap Peninsula in scenic Washington State. This is the seventh installment in an on-going series of posts dedicated to helping 1st Time Home Buyers successfully achieve their home purchasing goals. We have been identifying and discussing, in chronological order, key events in the home buying process.

In our last discussion, we offered some practical advice on what to do when going out to look at potential homes in a post entitled, "Tips for Home Tourists."

This time we'll talk about the key ingredients to a well-drafted offer in a post entitled, "Make Them an Offer They Can't Refuse!"

Okay, so you've found just the right home that is perfect for your needs. Now, you're heading back to your Agent's office to write up an offer. Drafting a good, reasonable offer is crucial to achieving your home-buying success. Since there are so many variables, rely heavily upon your Agent's knowledge and expertise to best counsel you during this stage of the process.

Here are just a few basic points to keep in mind when putting together your offer:

Current market conditions. In most areas, the market has recently slowed significantly. For several years, it has been a Seller's market. Properties have been selling relatively quick and usually for full price. In many instances, there were multiple bids. In a slowing market, there are more homes available, prices start to drop slightly, and Sellers become more motivated and willing to negotiate. Your Agent will know the dynamics of your particular market intimately, and will be able to explain the best strategies.

Days on market. How long has the house been on the market? Was it just recently listed? Again, your Agent will know the average "Days-On-Market" (the average amount of days a home is on the market until it goes under contract) for a specific area. Obviously, if a house has been on the market for an excessive amount of time, the Sellers might be more willing to negotiate.

Fair market value. Is the house worth what they are asking? Is the house priced according to current market value? Your Agent can do a quick analysis of recent sales in the area to determine if the asking price is reasonable and warranted.

Low price offers. The first thing you need to ask yourself is, "Why do we want to offer less?" Is it because you don't think the house is worth what the Sellers are asking? (refer to your Agent's price analysis). Perhaps you simply want to save money. The key to writing a lower offer is to do so without greatly insulting the Seller. Remember, in most instances, this has been their home and they may have some very strong attachments to it. At the very least, your offer should be enough to attract their attention, encourage reasonable consideration, and evoke a counter. Before submitting your offer, find out if there are any additional considerations that are important to the Sellers - when would they prefer to close? Where should you direct title and escrow? Try to accommodate the Sellers preferences in other areas.

Strengthening your position. Do everything you can to convey yourself as a strong, viable Buyer. Have a loan pre-approval letter from your lender that is specific to the property address. If you know that this is the house for you, put down as much earnest money as you can. Remember, earnest money is one of those elements that you can control and it communicates the seriousness of your intent to purchase. The more money, the more solid your offer (see my earlier post in this series on Earnest Money). Your Agent can also draft an effective cover letter to accompany your offer that introduces you to the Sellers. It helps to make things more personal, and puts "flesh" on your offer.

Keeping it clean. Try to make your offer as neat, simple, and straightforward as possible. Avoid using too many contingencies, handwritten changes or modifications to the standard forms.

Dealing with competing offers. In a fast, Seller's market, multiple or competing offers are fairly common. Once again, rely on your Agent's knowledge and expertise. Depending on your level of motivation for this house, you may want to consider an Escalation Clause or Addendum. Think bidding on eBay. You determine your top dollar and then stipulate an incremental amount up to your ceiling comfort. If you're the successful bidder, the Listing Agent is usually required to provide a copy of the competing offer.

Items conveyed with the property. Your Agent should have an MLS printout of the home that states which items (washer, dryer, refrigerator, etc.) are being conveyed along with the property. Make sure these items are included and specified in your offer.

Legal description. Ensure that a full, complete legal description is included as part of your offer (attached as an "exhibit") and that it requires both Buyer's and Seller's signatures.

Equipped with this information, and the expert counsel of a professional real estate agent, you'll be better positioned to successfully achieve "Your 1st Time Home Buying Adventure!"

The Rest in This Series:   "Tips for Home Tourists"   "Do I need Money to Buy a House?"   "Exchanging Your Vows"   "Top 10 Traits of a Great Agent, Part 2"   "Top 10 Traits of a Great Agent, Part 1"   "Good Lenders Don't Grow on Trees"

Rich Jacobson, Your Professional Real Estate Agent in Silverdale WA