Goldilocks & The Three Bears-Writing The Best Offer For Your New Home

By
Real Estate Agent with Integrity Real Estate Group

Writing the Right Offer in Northern VirginiaIn Northern Virginia the competition for listings is strong.Not as crazy as the height of the market but in many cases listings will bring multiple offers.

For Northern Virginia buyers that means working closely with a buyer’s agent to craft the best deal you can on your dream home.Recently while reviewing offers on a listing in Woodbridge the book “Goldilocks and the Three Bears” came to mind.

Make an offer that is to low and your offer most likely will not even be considered.What is to low?  If the average percentage of list price to sales price in a neighborhood is 97% and you make an offer for 75% of list price you can be fairly well assured your offer will not be considered.

If your offer is too high you may end up in the same pile.  Let’s face it appraisals are tight in today’s market.  Lenders aren’t financing just any deal and want proof not only of your financial qualifications but the value of the home you are buying.  Just as before if the list to sales ratio is 97% and you offer 120% a savvy seller will know that your offer won’t pass muster with an appraiser and their agent will know you are counting on a lower appraisal to renegotiate the price.

Finally there is the just right offer.  Not only does it fall in the parameters of the list to sales price ratio but it comes with a strong lender letter, a solid earnest money deposit (EMD) has reasonable contingencies and seller subsidy.  The just right offer is the one the seller will select every time. 

If you are searching for a new home in Northern Virginia and want representation from an agent who knows how to write the just right offer give Cindy Jones and CJ Realty Group a call at 703-346-2213.  Let’s talk about whether now is the right time for you to buy a new home in Northern Virginia and how to craft the offer that will get you in your new home before the end of 2011.

 

 

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If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Cheryl Ritchie 10/12/2011 03:22 PM
  2. Ruthmarie Hicks 10/13/2011 02:31 AM
  3. Evelyn Kennedy 10/13/2011 07:15 AM
  4. Beverly Femia 10/25/2011 02:36 PM
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Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Cindy - it is getting crazy here! My client wanted to see 6 homes on Saturday, all were available on Monday and two are under contract already....brand new listings. Things are REALLY picking up!!!

Oct 13, 2011 03:45 AM #33
Rainer
164,180
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore - Winnetka, IL

Cindy...very cute post.  We haven't seen the "too hot" (120% of asking price) offers in our market. If we did, we would have to wrestle with our sellers to not accept it....in spite of the implications.

Oct 13, 2011 03:48 AM #34
Rainmaker
490,543
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Here in San Diego, California many time over bidding on a property that is price right means that buyers even it the home doesn't appraise must come out of pocket, with the additional funds. That is how listing agents are demanding and getting the over the list price offer.

Oct 13, 2011 04:24 AM #35
Rainmaker
1,388,437
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Cindy, a perfect analogy for writing an offer that will be accepted.

Oct 13, 2011 04:50 AM #36
Rainmaker
346,323
Dawn Maloney
RE/MAX Trinity Northeast Ohio Real Estate Specialist - Hudson, OH
330-990-4236 Hudson & Northeastern Ohio

I would be terrified to have a buyer offer too much in our market - one day the appraisals are too low, then they are too high - they could really get stuck. Great analogy and explanation of how to properly create an offer.

Oct 13, 2011 04:57 AM #37
Rainer
482,047
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Well Said, Cindy!  Your analogy clearly shows the value of making the Just Right offer!
Bruce

Oct 13, 2011 05:01 AM #38
Rainmaker
810,127
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Cindy:

Your post says it succinctly.  Too low and its a no go.  Too high,not going to fly.  Just right a seller's delight.  I am so sorry for my flight of fancy, I promise no more rhyming today.

Oct 13, 2011 07:12 AM #39
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Dawn-the right offer has more than one component to it.  Making sure your offer puts your buyer's best foot forward is key.

Pat-no more 50% offers.  They just end up in the circular file.

Deborah-glad the post caught your attention.

Gail-I call the listing agent to make sure I know as much as possible before I submit an offer.

Oct 13, 2011 11:47 AM #40
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Dan-we had a stronger buyer's market a few years ago.  Now it is more balanced though there are buyer's who still think the market is 100% in their favor.

Carla-the analogy came to me while reviewing offers. 

Robert and Lisa-what might be the right offer for one seller won't be for another.  But at least writing a realistic offer keeps you in the negotiations.

Alan-usually if I have an established relationship with a buyer getting them to understand a reasonable offer is easy.

Oct 13, 2011 11:50 AM #41
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Joy-a simple analogy can sometimes get the point across.  Thanks for stopping by.

Margaret-we have been fortunate to escape some of the harsh market conditions in other parts of the country.

Andrew-thanks for stopping by.  Glad the analogy worked for you.

Jared and Amanda-hope you are having a good week.  The proof that this works is in ratified contract.




Oct 13, 2011 11:54 AM #42
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Terkel-a good listing agent can sniff out an offer that won't fly easily.

 

Kat-sure enough they often don't get it.  Especially the high offers. 

 

Jenifer-the late night infomercials just make us crazy and give prospective buyers bad advise.

 

Tammy-I get a few in multiple offer situations.  No doubt the agent thinks price is the only thing that matters.

 

Oct 13, 2011 11:59 AM #43
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Kay-it can be but if it is a lowball then most sellers will pass on it.

Beverly-thanks for stopping by.  Enjoy your weekend.

 

Mike-feel free :-)

Cheryl-I've had more than one client who looked at the lender letter and down payment as one of the key determining factors in accepting an offer.

Oct 13, 2011 12:03 PM #44
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Peter and Linda-putting your best foot forward when you present an offer is the way to end up with the home of your dreams.

Wayne-there were a number of lessons we learned when we were young that still work today.

Frank and Sharon-hope you are having a good week. Thanks for your comment.

Charlie-when I get an offer 50K over list price I know it's never going to get past the appraiser.

Oct 13, 2011 12:06 PM #45
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Gita-I've had a number of multiple offer situations this year on listings and run into them with buyers as well.

Jackie-our market is still doing fairly well so putting a good offer together is key to success.

Jeff-love the incomplete offers that agents send in.  They need to realize an offer full of blank spaces can actually get them in trouble with the association and DPOR if an agent wants to push it.


Ellie-glad to know your market is still perking along.

Oct 13, 2011 12:09 PM #46
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Aaron-Arlington is one of our hottest markets in the area.

 

Ruthmarie-if the analogy works for your clients feel free to use it.

Barbara-even in a down market not to many sellers are going to jump on a lowball offer.

 

Sandy-thanks for stopping by.  Have a good weekend.

Oct 13, 2011 12:11 PM #47
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Barbara Jo-good to hear.  Hope your client finds the home they want quickly.

 

Howard and Susan-I've been able to keep my sellers from jumping on the crazy high offers by explaining that the buyer is usually playing a game and in the end the sellers will be the ones that get burned.

Lorraine & Loretta-the way our contracts are usually written if the property does not appraise the buyer can walk or ask the seller to reduce the price.  Though the option is there to buy it irregardless of the appraisal it rarely happens.

Michael-thanks for your comment. 

Oct 13, 2011 12:18 PM #48
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Dawn-I don't have any buyers who are willing to overpay for a property in today's market.

Bruce-the right offer gets the job done every time.


Evelyn-Like your "just right a sellers delight" phrase.  Glad you are in a rhyming kind of mood.



Oct 13, 2011 12:20 PM #49
Rainmaker
1,729,393
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Cindy.....You did a great job with this one....so true!  Congrats on the feature!
Have a Great Weekend!


Go VOLS!

Oct 13, 2011 11:50 PM #50
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Rob-thanks for stopping by.  Hope you have a wonderful fall weekend.

Oct 14, 2011 12:48 AM #51
Rainer
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Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

Cindy, I came back to reblog this one.  Great imagery that makes the case simply. 

Oct 25, 2011 02:43 PM #52
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