Creating An Offer To Purchase With Your Buyer Client

Once you and your Buyer Client have found the right property, the next step is to craft an offer that will hopefully lead to an accepted offer.  There are many factors that go into a purchase offer and the Buyer Client is the ultimate decision maker.

These factors are as follows:

1) Price of similiar properties, normally the Agent will put together a CMA (Comparative Market Analysis) that will accompnay the offer.  This way the Seller and  Listing Agent see that You have done your homework and understand what comps We used to make Our decision.

2) Property Condition - Is the property in good condition or in need of updates and repairs.  Will the buyer have to invest alot of money for the repairs?

3) Length Of Time On The Market - A long period of time on the market may indicate a slow market, there is something inherently wrong with the property, or the property is over priced.  Over pricing is usually the number one reason a property will sit.

4) Supply And Demand - The Buyers offer may compete with others.  This happens alot in a Sellers market, but as We have seen in Our market lately multiple offers will come if the property is desirable and attractively priced.

5) Sellers Motivation - A Seller that is under duress or pressure to sell may be more receptive than one that wants to wait for the right buyer and price.

6) Terms - This is a very important part of the offer.  The terms can make a world of difference, sometimes even more then the dollar amount of the offer.  Again, this all goes back to the Sellers motivation.  Some terms that make an offer more attractive are all cash, short closing period, no home sale contingency for the buyer, waiving contingencies such as a home inpsection or mortgage (I recommend these stay in), and few or nor Sellers concessions.  The simpler the terms the more enticing the offer will be.

Tomorrow I will talk about preparing the offer to be delivered.