How to make an offer that will win?
Home buyers have to convince a seller to accept their offer.
IMPORTANT: Some buyers may have hesitation with making an offer, it's important to know that the California Purchase Contract protects the buyer and gives you the buyer lot's to time to cancel your offer without any recourse as long as you follow the instructions on the contract.
What makes up a great offer?
- A personal letter from the buyer to the seller
- Proof of funds of the deposit and down-payment
- Letter from the lender letting the seller know the buyer is approved at the value
The job of a top buyer's agent
A good buyer's agent is supposed to ask the appropriate questions of the seller or the listing agent about what's important to them in the sale, often a seller would like to have terms and those terms can often lead to an acceptance of a lower purchase price. Second job of a top buyers agent is to discover if the seller has either recieved other offers or if there is a threat of an offer on it's way. Sometimes a listing agent will post in the MLS or share with all offering buyers agents a specificed date in which the seller will review and respond to any and all offers.
Next step for your buyer's agent:
We need to have an important conversation about what the expectations are in the negotiation? Is this a property that the buyers would be ok with loosing if they couldn't get what they offered? Do they want to do a multi step negotiation strategy? Often a buyer doesn't have the stomach to deal with a lot of back and forth over a period of time, it's best to be aware of your negotiation style and tolerance!
Ask you buyers agent for a copy of the California Purchase Contract sample:
Most of the buyers fears and concerns with buying a home is supsided once they understand how the California Purchase Contract protects them. Second once a buyer understands the timelines and responsilbities that are layed out in the purchase contract then it's easier for a buyer to understand the next action steps in buying their home.
Pick your home "in escrow team"
- Home Insurance
- Home warranty Insurance
- Home Inspector
- Any other insprector required (pool, Roof, sewer etc ...)
- Have your lender ready! Once they recieve the accepted offer than they need to order the appraisal.
When you are buying a home, there are many problems that the seller is obligated to disclose. For example, in most states, it is illegal to withhold information about major physical defects on the property, but these disclosures don't always paint the entire picture of the home. Here are six questions you may 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 does the seller like most and least about the property? By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a "happening community," the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.
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) Are there any nuisances or problem neighbors? Use this answer to find out about any noisy neighbors, barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you insight on why the seller is really moving.
6) How are the public schools in the area? Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer's perception can give you some insight about the quality of the area's schools.
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. Your real estate professional can help you get your key questions answered and give you advice on how to evaluate your findings.