Tips on Making an Offer on Your Drea

时间:2024-10-03 17:26:36 资料大全 我要投稿
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Tips on Making an Offer on Your Dream House

Once you’ve found the perfect home, you’re now ready to begin the process of filling out an Offer to Purchase form. Though your real estate agent is a trained negotiator, it’s still important  to understand the process enough to ensure that you write and develop a contract that wins.

The truth is, developing your offer can be a thing of science. Offer too low and other prospective home buyers will outbid you or the sellers will wait to receive a higher offer. Bidding too high, although it gives you a more likely chance to get the house, can be unnecessary at times when you could’ve saved thousands. Submitting terms that will make all parties in the transaction is what you’re striving to do. Here are a few things to consider when making an offer on a property:

Day on Market.
As a real estate agent, this is the first thing that I look at when a client of mine wants to make an offer. How long the house has been on the market tells me how anxious and motivated the sellers are. If the average days on the market are four months and the house has been listed for seven months then I will recommend the buyer bases their offer on 90-91% of the list price. However, if the house has only been on the market for a few weeks then they’re probably going to hold out for a higher price if you come in too low. In this event I recommend closer to 94-95% of the list price.

Earnest Money.
Earnest money is a deposit that you give when making an offer on a house. The deposit, usually 1% of the overall purchase price, is held with the real estate firm or attorney until closing. Earnest monies are important when making an offer because it provides the seller with a certain level of comfort depending on how high the earnest money deposit is. For instance, if a buyer gives $3000 toward earnest money and defaults on the contract, the seller will get the money. Obviously, the higher the figure lets the seller know that the buyer is more serious about the property. If a seller receives two contracts that are both the same amount, earnest money could be a deciding factor. In a highly competitive real estate market, I recommend between 1-2% for all earnest monies.

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