When the house-hunting efforts have paid off and we've found your dream home, congratulations are in order! The offer process is both exciting and nerve-wracking. Here's a brief outline of the entire process that can help guide your expectations.
Home and Market Analysis: I begin gathering value estimates on a property once I have feeling it may be strong contender with my buyers. Once the decision is definitively 'YES!', the real in-depth analysis begins so that my clients can make very educated decisions on price. This involves providing good comparable properties recently listed and sold in the area. The general market tempo is also taken into consideration. There are both buyer and seller markets within towns, neighborhoods and even price ranges. We discuss an offer strategy based on this research as well as any insights I gather from the selling agent.
Offer Components: We will then draft the offer together. I find it helpful with first-time home buyers to show them the offer paperwork during our initial consultation, so there are no surprises when we are ready to place an offer. Terms, closing dates, and any contingencies are just as important as the price so we spend a good amount of time discussing those as well.
Getting an Accepted Offer: Negotiations are an integral part of the process and naturally this can be a nail-biting time for buyers. Once we’ve submitted your offer, the seller can accept it, reject it or return a counter offer. During these back-and-forth negotiations, you may need to compromise on few things but I work tirelessly to get you what you want. My expertise in both this field and my prior business careers has honed my negotiation tactics to a skillful art. Sometimes it is not only about the price - it is my job to find out what really will motivate the seller (and agent) to say "YES"!
Multiple Offers: In some instances, a well-priced home in a high demand neighborhood will receive multiple offers. I like to find out as much as I can about the competing buyers and also push to determine what will make our offer stand out. At or higher than asking price offers can happen, but we always must note that the purchase price must "appraise out", meaning your lender's appraiser must value the home at least what your purchase price is. Terms matter too. If all cash is to be used, this advantage will come into play for you.
In uncertain economic times, a higher down, or a strong loan approval with added features can push your offer to the top. No matter what, it is my responsibility to help you decide how strongly you want a particular home and to achieve your goals - without buyer's remorse afterwards!
Contract - Once we have an agreement with the seller and the binder is signed, I deliver the binder to your attorney. If you don't have an attorney, I will recommend a few names that I know well and who have earned my respect. In the meantime, I will help you schedule the property inspection (performed typically within 5 days) and you will contact your lender to get the finance process started. The seller’s attorney will draft the contract and send it to your attorney. Both attorneys will work together to finalize the contract and you will be on your way to buying your dream home.
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