Special offer

The Offer Price Is Just The Start

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

Let's drill down a bit further into the numbers, shall we?Fantastic news, we have an offer on your home!

And of course one of the first things you want to know is the offer price, right?

And that number is a VERY important number, but it's not always what it seems to be.

Scattered throughout the offer our opportunities for the buyer to ask for things that subtract from that number.

Closing cost assistance to the tune of thousands of dollars.

A one year home warranty paid by you.

The termite inspection for a VA loan buyer.

Title insurance

Personal property you didn't PLAN to leave (the refrigerator, the washer, the dryer, and maybe even that fancy zero turn mower for the yard).

Now of course everything is negotiable, so you can push back and counter the individual items or just ask for a higher purchase price to compensate.  After all, assuming there isn't much appraisal risk, your main concern is your NET price rather than the sales price.

A $195,000 offer with no concessions is a better net offer than a $200,000 offer asking for 3% in closing costs, a home warranty, title insurance and that fancy new refrigerator that you paid $3000 for last year.

And there are other terms in the contract that may ultimately take away from your purchase price.

What will the home inspector find and how much will it cost you to resolve any issues?

Is there a situation where you may need to move TWICE instead of once because your next home isn't ready? 

Will an FHA or VA appraiser find an issue that must be addressed prior to closing?

All of these things can impact your net price, and things to keep in mind as the negotiation progresses.  We're here to guide you through the process and provide the numbers you need.

Want to discuss further?  Just call Bill at 513-520-5305 or email Liz@LizSpear.com.

Serving Greater Cincinnati home buyers and sellers,

Bill & Liz aka BLiz

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Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO
Bill Direct:  513-520-5305
Liz Direct: 513-265-3004     
Fax: 866-302-8418

MailTo:  Liz@LizSpear.com

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Comments(5)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Bill. Cut to the chase and let me know my walk away dollars! Enjoy your day!

Jan 19, 2020 04:49 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Liz and Bill - price is important but as you said it's not the only factor.  So many other pieces of the puzzle need to come together for an offer to be accepted and successfully close. 

Jan 19, 2020 06:04 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Bill,

Your right the offer price is only the start. So many things come into play and you just showed why it's so important to be working with you so you can analyze each offer and show whether its a good one or not. 

Jan 19, 2020 08:23 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Bill - those are wise ways to negotiate an offer and still get your needs met! I like how you think! 

Jan 19, 2020 08:43 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

There is the offer price and the "what's in your pocket price."  And sometimes it is not just price, it could be timing, settlement date, rent back, home of choice contingency etc etc.

A good post explaining how to start looking at the offer Liz and Bill Spear . 

Jan 20, 2020 05:32 AM