Great ideas for making a successful offer on property. Hope these help. It was worth a re-post. I thank the original blogger for the post. Lot's of good information. I would also highly recommend the buyers have a pre-approval letter prior to even looking.
Once you’ve spent valuable time preparing to purchase a home and spent months searching for the perfect property, the big moment to make a successful real estate offer is finally here. Whether you’re planning to make an offer on a traditional home for sale, a short sale, a foreclosure or a FSBO property, the basic details of making an offer are all the same.
Although the paperwork seems never-ending with an expanse of verbiage, the specifics are really quite simple. First, you need to determine a fair offer price. This number should be based on research of comparable homes in the same area that have sold within the last three to six months. Next, determine an ideal deposit amount, also known as the earnest money deposit which basically tells the seller you are serious about purchasing their property. The typical earnest amount is between 1 to 3 percent of the total purchase price.
Once you feel comfortable with a purchase price and deposit, you’re on your way to making a successful real estate offer. The next step is to determine your timeframe. How soon do you need to close on the home, when will you provide mortgage approval documentation, when do you want to have inspections and when do you want to move-in? The seller will also be looking for details regarding any financial contingencies regarding details of what will happen to the offer in the case of not being approved for a mortgage or in the case of not being able to sell your current home for sale in a specified time period.
A few other points to include in a real estate offer include a property inspection contingency, attorney review and a seller’s disclosure. The property inspection contingency should state that you will indeed be having the property inspected and will present to the seller the full report to negotiate payment of any required repairs. An attorney review statement acts as a general back-up to ensure you have a better chance to get out of the deal if any other issues arise throughout the process. Finally, the seller’s disclosure is vital to ensure the seller discloses all known defects of their home such as past flooding, radon, termites, plumbing problems, structural issues, etc.
While a good real estate agent should advise you on how to go about presenting a successful real estate offer to the selling agent, it’s also wise for you to have a general understanding of this process to ensure a happy outcome. Keep in mind, the process of making an offer can be a back-and-forth game of offers and counteroffers until a happy medium is reached between both parties. Rarely will a seller accept a first offer, so keep trying until you’ve reached a deal!
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