Making an Offer
Before the offer to purchase is created, it is very important that you have been pre-approved by a lender.
This is one of the best negotiating tools a buyer can have. It shows the seller that you are financially able to purchase the home. After you have found the right home, it is time to prepare the offer.
Here are six questions you will want to ask that can offer additional insight about the prospective home before you make a final decision.
1) Why is the seller selling the house? This question may help you evaluate the "real value" of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.
2) How much did the seller pay for the home? This question can, in some instances, help the buyer negotiate a better deal-maybe even get the seller to carry part of the loan. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.
3) What percent of asking price does the listing agent typically sell their houses? By looking at the listing agents statistics on recent sales they've made you can get an idea of the agent's and therefore the seller's expectatiions on offers. And just how flexible on price they may be.
4) Has the seller had any problems with the home in the past? It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should also check that these items were repaired properly.
5) What have other similar houses in the area sold for? This will give you an idea of what a "fair" price is for the house you'd like to purchase. You can pay a little more or try to drive the price lower if you choose, but understanding the baseline is important as you negotiate.
6) How are the public schools in the area? Because the value of a community is greatly influenced by the public schools in the area, finding out how schools are effecting the market for the home you want is important whether you plan to use the schools or not.
Knowing all you can about a prospective home, not only helps you decide if it's the home of your dreams, but what offer to make as well. We can help you get your key questions answered and give you advice on how to evaluate your findings.