When people find the perfect home they usually get very excited. But then a little nervous and they realize they have to negotiate the biggest purchase of their life.
Different people handle these things differently. There is the "They should be lucky that I'm putting in a offer" crowd who low balls everything and feels that they are in control. And then there is the "oh I really want it and will pay them what they want" crowd who gives away the piggy bank to get their offer accepted.
The best way to handle this is to go right in the middle and to have your information before putting in that offer. Some of the information that you will want your agent to obtain for you is:
1. What does the Comparative Market Analysis say this home is worth? And how old are those sales. Are they really reflecting the current market?
2. Are those comparables in the same neighborhood or are they in close by neighborhoods, but not really the same?
3. What are homes not comparable, meaning maybe a different style of home, going for right down the street?
4. How much does the seller owe on the property?
5. How long have they been for sale?
6. Where are they moving to?
7. Has the seller already purchased another property or do we need to give them extra time to find their next home?
8. Since I am already preapproved for my mortgage - defined as through the underwriting process - can I negotiate better terms?
9. What do you think the seller's biggest trigger point is, money or time. If we close quick will they take less?
10. What items are they going to leave with the property and what is the value to the buyer for those items?
11. How much does the buyer want the house?
The reality is if you want to live in the same neighborhood as your family or friends and feel that you will be staying the home for a long period of time, it doesn't really matter much if you pay a few thousand dollars more to get the home you want in the neighborhood you want. However, you don't want to obviously pay more than the house is worth to do that.
With this information, you and your agent will be able to put together a logical offer for the property. Logical offers are more likely to get accepted. Accepted on the first try is good. Sometimes people wear out when offers and counteroffers go back and forth. The sellers may begin to feel that you are a pain in the butt and simply don't accept something that they normally would have becaue they feel you are the type of buyer that will then nick pick the inspection and create more problems down the road. Some sellers can and will wait for what they feel is a reasonable buyer.
If you have any questions on how to put together an offer, please feel free to call me, Patty Purdue at 801-792-1257.
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