As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing
How To Prepare A Good Offer
You’ve found it! The home you’ve been looking for. In your mind you are already positioning furniture. But before jumping into an offer, there are several things to consider to likening the chances that it will be ACCEPTED!
Consider your approach. The first thing to do is talk to your real estate agent. He will pull up comparisons of similar homes in the area that have recently sold to establish the market trend. With all the online accessibility these days you can do a bit of homework on your own. Search Trulia and Zillow to name a couple. Make sure you use a three month window so that your research is current. Doing all of these things will help to give you a better idea of the asking price in relation to similarly sold properties, including specific amenities and location.
Before considering a lowball offer have a conversation with your real estate agent. They are well versed in the market. There are times that a low offer will be considered in a sale, or at least begin a negotiation process. But beware that it could completely derail the deal.
How you are able to pay for your purchase can possibly help to command a lower price for the home your interested in. Cash offers are attractive to a seller in that they are easier and faster to close, which ultimately saves the seller a few bucks.
When you are ready to write the offer, make sure that all your paperwork is completed. Double check to make sure all signatures are where they belong. And if you are asking for concessions make sure they make sense for the market.
In competitive bidding situations consider what you ask for in regards to repairs and help with closing costs. In order to stay in the game talk to your real estate agent to sensibly consider what are “musts” and “wish list” items to be covered. When entering into a negotiation these types of concessions are the logical places to start in order to remain competitive.
Set a maximum price you are willing to pay. If you are seeking a mortgage you will have a ceiling set by your lender. This may be higher than what you are willing to comfortably carry each month. Stick with the amount you set for yourself. No one wants to have to scramble to pay the mortgage each month, that is only setting yourself up for headaches and stress and you won’t be able to enjoy your new home if that is the case.
Finally, if you can remember that this is just a business transaction. If this offer does not work out there are other homes out there and trust your “gut” that all things work out just as they are intended to!
Sam Lepore is a Realtor with Keller Williams in Moorestown, NJ. Call him today at 856.297.6827 ....