Making an offer in today’s market is almost an art form! There are many ways that a buying agent can have what is just words on a page, convey how much you really want this house to be your home.
You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies.
The right price to offer must fairly reflect the true market value of the home you want to buy. Alan will do market research regarding what is currently on the market and what has closed recently, and assist you with deciding on the correct amount to offer.
Don’t think you’re going to get a ‘bargain’…in this market, most of the homes that are in good condition receive multiple offers and there are bidding wars. So take his advise seriously regarding a fair and equitable offer.
The other financial and timing factors that will be included in the offer are:
- Earnest Money Deposits
This is what is considered the “skin in the game” term; this protects the sellers from the possibility of your unexpectedly pulling out of the deal and makes a statement about the seriousness of your offer. The higher the amount you can afford to put down, the stronger your offer will be viewed by the seller.
A schedule of events that has to happen before closing. How soon can you close? Are you flexible? The more flexibility, the better.
The items that stay with the house when the sellers leave. If they defined certain items as not included, make sure you can’t live without them before you put them in the offer.
There are other terms that Alan will advise you about putting into the offer.