The type of offer you submit to a homeowner will be greatly affected by what type of market you are in. In a buyer's market, you have more room to offer what you would like to pay and how would like to do it. In our current seller's market, it becomes more about what you are willing to offer in order to purchase it. In these times, making an offer on a home can be a frustrating process if the inventory is too low and there is too much competition.
Your real estate broker should be skilled in research, communication, and negotiation in order to get a sense of the sellers and their motivations. Your broker should be talking to the listing agent to get information about what the sellers want and what they will not accept. While contingencies like inspections are becoming less commonplace, it is still possible to include them in your offer and win.
What are you willing or able to offer to win in a seller's market? Can you offer more earnest money or a larger down payment? Are you willing to waive inspections?
On the other hand, what type of seller owns the home you are offering to purchase? Are they open to FHA loans? Not every seller is looking for a cash offer, so do not give up hope.
You may be tempted to write a buyer's love letter. This is a personal letter sent to the homeowner to compel them to choose your offer. It is advised to avoid this as it has the potential to create legal liability for the seller. For example, if you send a letter to a homeowner telling them you want to build a family there, they could be accused of discriminating against other buyers who make an offer. It is better to make a compelling offer and not risk legal liability which could kill the deal.
Ready to start the home-buying process? Schedule an initial consultation with John P. Sharp today. Let's discuss your real estate goals and how we can help you achieve them.
Know the market value for the home. Before you decide on an offer price, make sure that your real estate broker performs a comparative market analysis (CMA) on the home. A CMA will take other properties which are similar and compare them the quality and condition of the home you are hoping to buy. Using a variety of sources, your real estate agent will be able to determine the most accurate market value and compare it to the listing price. If the market value is significantly lower than the asking price, you may consider not wasting your time with an offer. At the very least, have your broker call the listing agent and find out if the seller is willing to consider an offer in your acceptable range. These should be standard real estate services. Continue on with the purchasing guide.
John P. Sharp, Premium Real Estate Broker with Skyline Properties, Inc.
19515 North Creek Parkway, STE 214, Bothell, Washington 98011, United States
Call us today at 425-230-2525
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Premium Real Estate Broker with Skyline Properties, Inc.
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