A Strong Offer Increases Your Chances of Success

A strong offer is one that sellers will consider seriously;  it shows that you mean business and provides benefits for both parties.  You want to get the best possible deal on a property you've selected, so make a strong offer which is either likely to be accepted or will motivate the seller to open negotiations.

An offer can be simply divided into price and terms (closing date, condition of property, etc. ) -  pick one or the other to maximize. Trying to make both price and terms advantageous to yourself will likely offend the seller and make them less likely to negotiate*.

A strong offer has the following characteristics:

- Shows the buyer is serious about buying the property. The size of the binder is a good indication of seriousness and shows you have some skin in the game.  A typical binder is 1% of purchase price:  less is a weaker offer, more is a stronger offer.  A seller takes a risk when they take their home off the market and a higher binder mitigates that risk. 

- Shows the buyer is capable of buying the property.  A pre-approval letter or proof of funds for a cash offer is essential. Without it, offers may be rejected outright.  

- Has a balance between asking for and giving concessions.  A strong offer may propose a lower purchase price and balance it with concessions on terms such as a quick closing date (10 days) and accepting the property "as is" without any warranty or repairs.

Conversely, if the buyer needs help with closing costs and wants the property to be in perfect condition when they move in, they can still make a strong offer by giving the seller full asking price with closing costs added on top - assuming that the house is priced at or below market value. 

Common sense and an attitude of compromise should rule the day regardless of whether it's a buyer's or seller's market and ideally, there will be an incentive for both sides in every offer and counter offer.

* Expert negotiators such as Herb Cohen http://www.herbcohenonline.com/index.htm advise against negotiating for yourself because it's extremely difficult to remain objective, even if you have excellent negotiating skills and experience.

If you know of anyone who's thinking about buying or selling a home in Tallahassee, I'll be happy to give them the information and guidance they need to make a smart move.

Colleen McConnell, CRS, Broker-Associate
www.Tallyhouse.com
2344 Centerville Rd, Suite 105, Tallahassee, FL 32308