Writing the offer is to put the transaction you want on paper. You will need to determine
what price you are willing to pay for the house, the contingencies you want the contract to
contain, and the timetable you would like the transaction to follow.
When both the buyer and the seller have signed the agreement, it becomes
a contract and dictates the timetables and the costs involved for all parties to the
transaction. This outline is not inclusive of all you may need to know to write a solid
contract that protects you. If you are a not using a real estate agent, a good strategy
is to hire a real estate contract attorney to help you with the purchase agreement.
Tips
Don't negotiate verbally with the seller. Oral negotiations are not enforceable.
To move the process along quickly, start with your best reasonable offer. Use our
home comparable report to determine an offer amount.
Be prepared to provide evidence that you qualify to buy the home, especially if you
are working without a real estate agent. Best strategy: be pre-approved or at least
pre-qualified for your mortgage prior to making an offer.
- Be aware of the market - in a buyer's market, you can negotiate hard to get
the price and terms you want; but in a seller's market, you may have to pay close
to, or even over, list price.
- Make the offer good for a certain timeframe (not less than 24 hours) so you
get a fast response from the seller.
- Give a reasonable earnest money deposit - no seller should take a house
off the market without a financial commitment from the buyer.
In really hot markets, competitive offers are not unusual. To make your bid as strong
as possible, have your mortgage pre-approved, be prepared to settle fast if that
benefits the seller, and offer close to or at list price. Many times, buyers in
competition even bid prices up, and the house ends up selling for more than the
original asking price. Be careful about getting caught up in an auction atmosphere.
Pay more only if the properties currently on the market justify a higher price and
you really love the house.
If you are making a very low offer on a fairly priced house, expect tense negotiations
and be prepared to have the seller decline the offer. Best strategy - have your mortgage
pre-approved. Agree to adhere to the seller's preferred timeframe and be prepared to
settle quickly. If you are in a slow market or have a desperate seller, it might work.
If you are making a low offer because the comparables do not support
the asking price but you still love the house, use the same tactics real estate agents
use when they are presenting low offers to sellers. Best strategy: provide a home
comparable report and your own assessment of competing houses on the market to convince
the sellers they are overpriced. Have your mortgage pre-approved so the sellers know you
can perform on the contract, and agree to adhere to the seller's preferred timelines.