Everyone loves a great deal, right? The same can be true when you are purchasing a home. Buyers want to feel that they are getting the very best deal possible. The BEST value for the money. Fair enough.
Sellers also want to feel that they are getting top dollar for thier home. Getting "whats' fair". OK.
But how do you put these two sides together, into a deal that works? It's a lot more comlicated than you might even think. But here are a few suggestions that can help you navigate thru a home offer:
1. Keep it clean. No, that doesn't mean leave out the curse words, though you should!! A clean contract is one that isn't full of all sorts of requests, changes, and complications in general. Don't muck up the contract. If you can keep it short, sweet and to the point, it is just that much easier for the agent who presents the offer to get it accepted. In other words, KISS. As in; "keep it simple, stupid". The deal can be lost in the details.
2. Dont low ball. Oh, this one will touch a nerve. OK, lets break it down into a case by case scenario. Scene A: The property is HOT. Your agent has called you and said matter of fact "You need to see this house NOW". You know buyers are beating the doors down to view the home. You go inside, and sure enough, there are already 12 business cards on the counter from other agents who have shown the home, and its only been on the market a day! WHY would you low ball? Hoping for a counter offer? Sure, those are a good time. And while you are pondering the counteroffer, another buyer comes in and takes that HOT property right off the market and right off of your hands.
Scene B: Its a bank owned home. This one has deal written all over it. The house is offered at 50,000. With a bit of work, its probably worth 100,000. So we offer 25,000. "Lets just see what happens" you say. Well, typically the bank will take AT LEAST 48 hours to look at your offer. And if any other offers come in during that time? They look at those too. So Joe Smith from up the road gets the house for 45,000. And we just lost probably 55,000 in potential equity because we wanted to "give it a try". If you are serious about the home, make a serious offer. That may not mean FULL PRICE. But it does mean FAIR PRICE.
3. Selling a home is an emotional process for most homeowners. So please, keep a home offer about THE HOME, and dont get hung up on trivial things such as the mower in the garage you like the looks of, the cedar chest you have your eyes on, or any other personal objects. The focus should be the house. I have seen deals fall apart over such trivial things as mini-blinds. Maybe that shelf in the living room appeals to you and you dont think it will make a difference to the seller, but Mrs. Seller may have recieved that shelf from her dear departed Grandma, and it DOES mean something to her. Let her have it. The house is what you want, right?
4. Sellers, be open to todays financing. Again, this may touch a nerve, but I speak the truth. What worked 20 years ago, as in 20% down for a home, no seller assistance on things like closing costs...well, it doesn't happen so much today. I see folks get offers HIGHER than what they are even asking, who get bent out of shape becuase the buyer needs closing cost assistance. It all comes down to NET. Is it what you want? Is it REALISTIC? Is it workable? Then take it and run.
5. Want your offer to REALLY be powerful? Here's two things that you MUST include: good earnest money, and a pre-approval letter. The peace of mind these two items provide a seller can help grease over many other little issues in a contract, sometimes even the price.
6. HEY! Listen to me! Or whomever your Realtor may be. If I think the house can stand a low ball offer, or I am privy to some info that will help out in your negotiating, I'll let you know. If I think the house is a steal and you should grab it fast, I'll let you know that too. If its overpriced, you can bet I'll tell you that one fast! Most importantly, if you are a buyer who wants to buy, or a seller who wants to sell, that's all I really need to know. Lets find your dream home and leave the negotiating to me!
Kelley Weimer
a house "SOLD" name
Professional Real Estate services for Preble County Ohio and beyond; including Eaton, Lakengren, West Alexandria and Lewisburg.
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