Making An Offer

Before we write an offer, we will have an important conversation about your thoughts on that particular property and how aggressive we should be in our offer and negotiation strategy.  Is it most important to get the house at all costs or would you be willing to walk away if they don’t agree to what we are offering?  The period of when an offer is submitted to when it is accepted can be stressful and it’s good to have a clear set of expectations of how things could go so no surprises happen.

Also before an offer is written, we will do some investigative work to find out any information we can about the home to make sure we don’t miss any red flags that might deter you from wanting to move forward. A few of these items are outlined below:

  1. Why is the seller selling the house? This question may help you evaluate the “real value” of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.
  2. How much did the seller pay for the home? This question can, in some instances, help you negotiate a better deal-maybe even get the seller to carry part of the loan. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.
  3. What does the seller like most and least about the property? By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something you are looking to avoid. For example, if the seller describes his house as being in a “happening community,” you might consider this a negative factor because the area may be too noisy or busy for your taste.
  4. Has the seller had any problems with the home in the past? It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. We should also check that these items were repaired properly.
  5. Are there any nuisances or problem neighbors? Use this answer to find out about any noisy neighbors, barking dogs, heavy airplane traffic, or even planned changes to the community, such as a planned street widening. This may give you insight into why the seller is really moving.
  6. How are the public schools in the area? Because the value of a community is usually greatly influenced by the public schools in the area, finding out the seller’s perception can give you some insight into the quality of the area’s schools.

Knowing all you can about a prospective home, not only helps you decide if it’s the home of your dreams but what offer to make as well. We are here to help you get answers to your key questions and advise on how to evaluate our findings.

During this process, we will also try to uncover any specifics that the seller would like to have accommodated in the sale process.  Often times including those terms can lead to acceptance, possibly even at a lower purchase price.  We will also try and determine if the seller has received other offers or if there is a threat of an offer on its way. Once we have this information we will prepare your offer which includes:

  1. Proof that you can afford their home.  This includes the pre-approval letter from the lender and a financial statement showing proof of earnest money deposit and down payment.
  2. The Real Estate Purchase agreement with dates for all major deadlines included

Once the offer is submitted, the seller typically has 24 hours to respond with acceptance, a counteroffer or to not respond at all.  We stay in touch with the seller’s agent during this process to keep tabs on how things are going and what we can expect to receive back.  This communication allows us to discuss what our next steps will be.

If the offer is rejected, this means they got a better offer or better terms than we were able to offer.  It is unfortunate but this is the reality of real estate.  We can however offer to be a “backup” to the accepted offer should things not work out with their chosen offer.

If they counter offer we will discuss whether to accept or submit a counter offer.

And if they accept, then congratulations, you are under contract!

Contact The Nelson Team Today