May want to change where some of the paragraphs are laid out in this section
The Offer
Once you’ve found the perfect property for you, it’s time to make a formal offer to purchase. Depending on the type of sale, and even the state or country you live in, the process of making and offer can vary. This is done in writing, specifying every detail that is part of the agreement. There are standard state forms that we use to prepare your offer. Writing the offer takes approximately 45-60min, but takes only a short time to sign, as most offers can be signed electronically using a system called Docusign.
Presenting/Negotiating the Offer
The seller will be presented your offer. The seller has three options to respond. They can
· Accept the offer.
· Reject the offer.
· Counter the offer.
Once we all agree on the terms of the offer we will have an “accepted offer” and will move forward with inspections, appraisal and finally closing.
Have Confidence in Your Search Experience
Keep in mind that when it comes to making an offer, there is no single right answer and no “exact” price or terms for a home you covet. Partner with a great Realtor and trust your judgment.
Learn All You Can Before Deciding on Your Offer
If you are ready to write an offer, first find out what you can about the listing. In order to come up with the best offer you’ll need to know how long the home has been on the market, if there are other offers being presented and if there’s a specific day the sellers will review the offers.
Reviewing Comps is Important
Your Realtor should provide you a list of recent sales data to review and compare. Take time to review this information with regard to price, days on market, location and condition of the home.
Give Your Lender a Heads Up
Let your lender know you plan to make an offer on the home. Not only will you need a pre-approval letter with your offer, but you will want an update on mortgage rates and products, since these may change daily.
Discuss Terms
In addition to price, you will need to decide on terms. How long will you need for your inspections? Do you want to close quickly or a longer close? Will you need an appraisal and loan contingency? Do you have a home to sell?
The terms of your offer can make or break your offer. If the seller wants a quick close and you can do it, try to accommodate them. If you are competing with a cash offer, make your loan terms as strong as possible. Combine all of the data from above and make your best offer.
The best way to make a formal offer and avoid any confusion is to make the offer in writing. Your Realtor will often provide you with a contract to start the process which will also highlight any conditions of sale. They will then present this offer to the sellers or listing agent. Common conditions of sale are subject to:
· Financing
· Buyer’s Inspection
· Sale of Another Property
· Seller’s Property Disclosures
· Preliminary Title Report
· Appraisal
· Homeowners Association Documents (HOA)
The offer will be prepared on a standard approved purchase agreement and you will be asked to sign all the appropriate pages. Once this process has been completed your Realtor will check whether any other interested parties are submitting an offer. This process ensures the situation remains fair to all parties in a multiple offer situation.
Once the offer is presented, the seller can accept your offer, reject it or counter it. Countering usually occurs when the seller is not satisfied with the price offered, terms and/or contingencies in your offer and subsequently alters them. The purchase agreement and counter offer will be brought back for your consideration.
When a sellers counter offer is submitted to you for review, you also have the right to accept, reject or counter. If you decide to accept the counter offer, you initial/sign the seller’s alteration and the property is now under contract, subject to any contingencies the purchase agreement may contain. If you choose to reject the counter the contract is terminated otherwise you can counter and negotiations will continue.
The Offer
Once you’ve found the perfect property for you, it’s time to make a formal offer to purchase. Depending on the type of sale, and even the state or country you live in, the process of making and offer can vary. This is done in writing, specifying every detail that is part of the agreement. There are standard state forms that we use to prepare your offer. Writing the offer takes approximately 45-60min, but takes only a short time to sign, as most offers can be signed electronically using a system called Docusign.
Presenting/Negotiating the Offer
The seller will be presented your offer. The seller has three options to respond. They can
· Accept the offer.
· Reject the offer.
· Counter the offer.
Once we all agree on the terms of the offer we will have an “accepted offer” and will move forward with inspections, appraisal and finally closing.
Have Confidence in Your Search Experience
Keep in mind that when it comes to making an offer, there is no single right answer and no “exact” price or terms for a home you covet. Partner with a great Realtor and trust your judgment.
Learn All You Can Before Deciding on Your Offer
If you are ready to write an offer, first find out what you can about the listing. In order to come up with the best offer you’ll need to know how long the home has been on the market, if there are other offers being presented and if there’s a specific day the sellers will review the offers.
Reviewing Comps is Important
Your Realtor should provide you a list of recent sales data to review and compare. Take time to review this information with regard to price, days on market, location and condition of the home.
Give Your Lender a Heads Up
Let your lender know you plan to make an offer on the home. Not only will you need a pre-approval letter with your offer, but you will want an update on mortgage rates and products, since these may change daily.
Discuss Terms
In addition to price, you will need to decide on terms. How long will you need for your inspections? Do you want to close quickly or a longer close? Will you need an appraisal and loan contingency? Do you have a home to sell?
The terms of your offer can make or break your offer. If the seller wants a quick close and you can do it, try to accommodate them. If you are competing with a cash offer, make your loan terms as strong as possible. Combine all of the data from above and make your best offer.
The best way to make a formal offer and avoid any confusion is to make the offer in writing. Your Realtor will often provide you with a contract to start the process which will also highlight any conditions of sale. They will then present this offer to the sellers or listing agent. Common conditions of sale are subject to:
· Financing
· Buyer’s Inspection
· Sale of Another Property
· Seller’s Property Disclosures
· Preliminary Title Report
· Appraisal
· Homeowners Association Documents (HOA)
The offer will be prepared on a standard approved purchase agreement and you will be asked to sign all the appropriate pages. Once this process has been completed your Realtor will check whether any other interested parties are submitting an offer. This process ensures the situation remains fair to all parties in a multiple offer situation.
Once the offer is presented, the seller can accept your offer, reject it or counter it. Countering usually occurs when the seller is not satisfied with the price offered, terms and/or contingencies in your offer and subsequently alters them. The purchase agreement and counter offer will be brought back for your consideration.
When a sellers counter offer is submitted to you for review, you also have the right to accept, reject or counter. If you decide to accept the counter offer, you initial/sign the seller’s alteration and the property is now under contract, subject to any contingencies the purchase agreement may contain. If you choose to reject the counter the contract is terminated otherwise you can counter and negotiations will continue.
Lowball Offers…(Are Wild Pitches in Real Estate Negotiations)
Let’s say you are a buyer and you have a house that meets your needs and its listing price is in your financial comfort zone. You have reviewed recent comparable sales for like properties and established the value of the home. You are armed with a pre-approval if you are going to seek financing or have copies of statements verifying liquid funds if you are paying cash. You are ready to make an offer and begin good-faith negotiations for the house.
Stop for a moment and think of yourself as a pitcher…a baseball pitcher. Think of the seller as the batter at the plate. The catcher’s mitt is like the comps...the target you are aiming for. Are you with us?
Pitchers have more than one pitch. Each pitch is used for a different strategy. Offers are the same. You can make a full price offer with very strong terms…a fast ball pitch down the middle of the plate. If a house is priced at market value and there is strong competition from the buyers, your fast ball is the best option. And you may have to go over the list price…that is, put a little extra on the pitch!
You can make an offer somewhere at the bottom of the zone of established value. That is like throwing a slider or a breaking ball low and inside, if it is interesting (string terms like a high percentage down, no mortgage contingency, waiving of inspections), the seller will take a look at that pitch and may swing (a decent counter offer comes back to you) or a check swing (no or low counter offer).
Or, you can combo up some strong terms with a sensible value price…that’s like throwing a knuckleball in the strike zone and let the seller make the contact. Get the ball in play and see if you can reach agreeable terms and price for both sides.
Lately, we’re seeing too much of the dangerous pitch choice…the wild pitch. Lowball offers are like wild pitches. Wild pitches are so far out of the zone, the catcher doesn’t see it coming, can’t catch and the batter is puzzled and trying not to get injured. Same thing with lowball offers. They insult the seller, confuse the agents about motivation, and there is no basis in anything concrete to support the offer. Pitchers who pitch wild pitches get pulled. The seller reacts by making no counter offer and saying “NEXT”. Your wild pitch offer has set a tone for the negotiation and vicariously painted a picture of yourself as being opportunistic, unrealistic or not serious. If the seller is able to remain calm and let you make an improvement, you are lucky. But the damage has been done. You have left the door wide open as a direct response to your lowball offer.
When you are ready to make an offer, think of yourself as a pitcher with a choice of pitches. AVOID WILD PITCHES! Study your target. Get that offer over the plate and give the batter something to look at and consider swinging at! If you can put the ball in play, you are on your way to buying a home.
Let’s say you are a buyer and you have a house that meets your needs and its listing price is in your financial comfort zone. You have reviewed recent comparable sales for like properties and established the value of the home. You are armed with a pre-approval if you are going to seek financing or have copies of statements verifying liquid funds if you are paying cash. You are ready to make an offer and begin good-faith negotiations for the house.
Stop for a moment and think of yourself as a pitcher…a baseball pitcher. Think of the seller as the batter at the plate. The catcher’s mitt is like the comps...the target you are aiming for. Are you with us?
Pitchers have more than one pitch. Each pitch is used for a different strategy. Offers are the same. You can make a full price offer with very strong terms…a fast ball pitch down the middle of the plate. If a house is priced at market value and there is strong competition from the buyers, your fast ball is the best option. And you may have to go over the list price…that is, put a little extra on the pitch!
You can make an offer somewhere at the bottom of the zone of established value. That is like throwing a slider or a breaking ball low and inside, if it is interesting (string terms like a high percentage down, no mortgage contingency, waiving of inspections), the seller will take a look at that pitch and may swing (a decent counter offer comes back to you) or a check swing (no or low counter offer).
Or, you can combo up some strong terms with a sensible value price…that’s like throwing a knuckleball in the strike zone and let the seller make the contact. Get the ball in play and see if you can reach agreeable terms and price for both sides.
Lately, we’re seeing too much of the dangerous pitch choice…the wild pitch. Lowball offers are like wild pitches. Wild pitches are so far out of the zone, the catcher doesn’t see it coming, can’t catch and the batter is puzzled and trying not to get injured. Same thing with lowball offers. They insult the seller, confuse the agents about motivation, and there is no basis in anything concrete to support the offer. Pitchers who pitch wild pitches get pulled. The seller reacts by making no counter offer and saying “NEXT”. Your wild pitch offer has set a tone for the negotiation and vicariously painted a picture of yourself as being opportunistic, unrealistic or not serious. If the seller is able to remain calm and let you make an improvement, you are lucky. But the damage has been done. You have left the door wide open as a direct response to your lowball offer.
When you are ready to make an offer, think of yourself as a pitcher with a choice of pitches. AVOID WILD PITCHES! Study your target. Get that offer over the plate and give the batter something to look at and consider swinging at! If you can put the ball in play, you are on your way to buying a home.
