Understanding The Offer Process
After we’ve found a home you can envision yourself, or your family living in, we’re ready to move forward to making an offer. At Central Florida Prime Real Estate, we emphasize doing this on the best possible terms, also with a clear strategy.
Considerations When Placing An Offer On A Home
- What is the current asking price?
- How many days has the home been on the market?
- Can you afford it?
- Looking at CMA (Comparable market analysis)
Other Considerations When Buying A Central Florida Home
It’s important to look at how many days the home has been on the market. This gives you the negotiation power to determine where your offer should come in. If the home has been sitting on the market for months than it may be a good time to put in a lower offer than a home that has recently been listed.
Have you been pre approved for certain price home? If so does it fall within the budget of the home you are looking at. If it does not do you have a plan of action to be able to afford it?
I will perform a CMA- Comparative Market Analysis to see what similar homes in the area have recently sold for.
Some things to question or consider when making an offer
-Find out why the owners are selling their home. This may give you information that may work to your advantage when negotiating a price on the home. If it has recently been listed it may be more difficult to get the owners to agree to a lower price. If the home has been on the market for longer period of time it may work to your advantage when submitting a lower offer.
-Find a strategy that works when putting in an offer on a home. If there are multiple offers on a home it may be important to set a limit on how much you are willing to spend above the asking price. Another option that sometimes works well is writing a letter to accompany your offer explaining them your situation and giving the owners some information about you and your family. You can include things like- why you are in love with the home; your future plans for it and how excited you would be if you were able to get the home. These are all things that would set you apart from other potential offers.
-Adding contingencies to your offer could jeopardize your offer being accepted. Contingencies such as qualifying for financing or contingent on the sale of your existing home or even findings on an inspection on the home are all things that are very important but could put you in a position where the buyer is less likely to accept your offer. Here are basic examples of Contingencies
-The buyer is obtaining specific financing from a lending institution- if the loan can’t be attained the buyer will not be bound to the contract.
-Having a satisfactory report by a home inspector- The seller must wait at least 10 days to see if the inspector submits a report that will satisfy the buyer. If the report does not satisfy the buyer the contract would then become void.
-The negotiation process can be very tricky and stressful at times. This is why it is so important to have a professional real estate agent on your side. Its important to keep personalities out of a real estate transaction and a good real estate agent knows how to do that. If you let me assist you on your home buying needs you will be in good hands through the entire process.
Examples of having a strong buyers bargaining power in a Real Estate Transaction.
-If you have been formally preapproved for a mortgage
-If you don’t currently have a home that you must sell before affording another home
-If you will be paying all cash
-If you can come to agreement, close and take possession that is convenient to the seller.
-Including a deposit when making the offer on the house- this cash deposit shows “good faith”
-Once your offer is in you may encounter the seller responding with a counteroffer. There may be certain terms in this counteroffer that may differ from your initial offer.
-The closing date or date of occupancy
-The agreed upon price
-The time for inspection
-Certain terms within the contract
There are three options to the counteroffer. You can accept the offer, reject it or counter the counteroffer. This process will continue until an agreement is reached on both sides. Once both parties agree on all terms and conditions the contract is then written and signed.
If you need any information or help on making your next offer please contact me today!