Determining Components of a Good Offer

Looking for a new place takes a lot of time. You may have visited a lot of sites just to look for your ideal home. Some have coordinated with a real estate agent just to help them with their ideal property. Once they have found your ideal property, they will try to negotiate with the agent of the seller, for sure there are others who wanted to get that property as well, but for the agent to be successful in getting the property, he or she has to come up with a good offer. Those who are buying a home need to know what they should offer, and those who are selling the home need to know what constitutes a good offer.

What is a good offer by the way? Do you have to give the seller an appliance showcase? Or a gift cheque? Not really. Not that kind of offer would make the seller give the keys to you. What will happen next after you have found your ideal property, is your agent will prepare the Offer to Purchase. The Offer to Purchase is a very legal document that says you agree to buy the seller’s house.

There are so many types of offers you can use to get the seller’s house. The easiest way to obtain the house of the seller is if you will agree to purchase the house without any conditions. Usually when there’s a condition, like condition for the seller to include the furniture on the sale, the seller would normally refuse. Seller’s agent will reject it or you will be asked to change your condition to something acceptable on the seller’s side. If there’s a condition, that is what you call a Conditional Offer. Common Conditional Offers are subject to a clean home inspection, subject to financing approval, or subject to the sale of the buyer’s existing home. Usually, the property is not sold by the seller until all conditions have been met.

There are many factors to consider when making an offer. First is the Price. It takes a lot of thinking as to how much would the buyer purchase the seller’s property. Offer too little and you might have a small chance of getting the property, but if you offer too much, you might be losing a lot of money which is not equivalent to the market value of the property. Deposit is also a factor to consider as it shows good faith on the buyer’s end. Next is terms. It includes the total price offered along with the financial details. You may get a loan from the bank, get a VA or FHA loan or pay cash. Condition plays a very important role for the buyer to get the property(see the previous paragraph). Another one is inclusion or exclusion in the sale. These are items that can be included or excluded like appliances or decorative items. Lastly is Closing day. This is the day when the title of the property is being given to the buyer and the transaction of funds finalized.

Since you have an idea on how to create a good offer, sellers will not think twice anymore in accepting your offer.