Making the Offer
You’ll base your offer on value determined from the CMA and factors such as overall condition and the condition of various building systems and appliances. (You also need to be sure that what you’re offering fits your budget.) The more sound the reasoning put into this number, the more likely you are to be able to justify it and sell it to both the seller and their agent.
It is also important to note that an offer contains considerations other than price. Most purchase offers are made subject to, but not limited to, contingencies such as the ability of a buyer to secure financing within a certain time period, and at a desired interest rate. Other common contingencies include acceptable structural inspections and reports, water and septic tests and, depending on the property, certain environmental tests. All of these contingencies are part of why it’s important to use an experienced buyer’s agent.
Negotiating a Price
The offer is made. Let the negotiations begin! Your offer might be accepted—but if it’s rejected, there may be a round of counter-offers (as many as it takes until both you and seller reach a meeting of the minds.).
Here again my twenty-five years in sales and my negotiating experience can help you immensely. There are many creative ways to negotiate a real estate transaction well beyond mere haggling over price, and that’s when experience counts the most. Most people only buy or sell real estate a few times in a lifetime. A good buyer’s agent can do several transactions a year.
Congratulations! You have an accepted offer. Now what?
- Hire a lawyer (you’ll want one that does real estate transactions regularly)
- Both you and the seller sign the purchase offer agreement (this will form the basis of the more formal contract to come).
- Your earnest money deposit is put in escrow.
- Order inspections and a survey if required. (Some lenders require one and sometimes they don’t.) Usually this is done only after inspections and contracts have been signed because a survey can be costly.
Think of the time and money your buyer’s broker has already saved you! And there’s more to come.
© Copyright 2015. Brian Cafferty. All Rights Reserved.