10 Things to Consider When Making an Offer on a Home
Published on December 2016
When making an offer on a home, there are 10 factors that you need to consider so that the offer is as good as it can be:
1. Price. We tend to think of the listing price as being the proper price, but this isn’t the case. You have to think about what’s a good price for you, and what value really means to you. The key is to be flexible depending on what research your Realtor provides you.
2. The earnest money. This sum isn’t set in stone, but is often 1% to 2% of the sales price. More earnest money down will be viewed as favorably by the seller and their real estate professional.
3. The down payment. There are many financing options, we can offer a really low down payment, but understand the more you can put down, the stronger your offer is going to look.
4. The closing date. It’s important to work with your Realtor and determine what a good closing date would be for both you and the seller. If there’s some flexibility you can give to satisfy the needs of the seller, all the better.
5. The lender. Your loan pre-approval and who you use for a lender is very important. Using an online or out-of-state source as your lender is a red flag for most listing agents as they may not be as familiar with our states requirements and could leave you vulnerable. Have a good local credible source of finance.
Sellers prefer to deal with people that they like.
6. The possession date. Working out a possession date that is beneficial for both you and the seller will help enormously, especially if you need to work out a rent-back agreement.
7. The inspection. These are critical in ensuring that what you’re buying is a good, sound property. Sellers can develop anxiety over this process, and they want to feel that it will be done in a timely fashion and that buyers will be reasonable. Your Realtor can help clarify what you can expect and what not to expect.
8. The appraisal. Appraisals that will be done as soon as possible can help the overall presentation of the offer.
9. Concessions. You as a buyer may need to make or request concessions to close the deal. Construct these carefully so they aren’t viewed negatively by the seller.
10. The credibility of both you and your agent. Sellers like to deal with people they like. Time and time again, we’ve seen sellers accept offers that were inferior in price to other offers simply because they liked that particular buyer better. They will also gravitate toward a Realtor that they’re comfortable with.
If you or anyone you know is looking to buy or sell real estate and values good representation, we’d love to speak to them. Just give us a call or send us an email. We look forward to hearing from you!