You have probably gone through quite a bit of searching and preparation in trying to find the home you wish to purchase. Your HomeSmart Agent has been there for you, shown you properties based on your initial list of desirable features and narrowed your options. At this point, you will have found the home you want, and will be commencing the process to proceed with an offer on the property.
There are a number of factors that will effect your decision on what to offer on the property. Market conditions are always a factor. For instance, if it is a “Buyer’s” market, you will have some more negotiating room for the property. In a “Seller’s” market, you may want to place your best offer up front in order to be the one chose by the Seller.
Also to be considered are the values of the properties around the one you want. These figures are typically called the “comps” or “comparables”. Your Agent will show you all of the properties on a list that have closed or are for sale currently in the vicinity of the property you are submitting an offer on. These comps must be analyzed and a realistic value for the property established. There will be an appraisal on the property after you open escrow, and often what you are willing to pay for a property and what an appraiser determines as its value are two different numbers!
You will also want to establish the close of escrow date, or date you will actually become the owner, before writing an offer. If you are obtaining a loan, a Lender will generally need about 30 days to complete your loan, order and evaluate the appraisal, and furnish the closing documents. If you have been pre-approved, this time frame may shorten. Of course, you will want to give yourself ample time to conduct any inspections on the property prior to your chose closing date.
There are other terms to be considered when placing an offer that may effect whether or not the Seller is willing to accept the offer, or whether you are willing to accept the Seller’s terms. Some of the factors to consider are if a pre or post possession of the property has been requested, if a Home Warranty will be included, and as stated previously, what market conditions currently are.
At HomeSmart Realty Group, we feel that you cannot enter into an agreement without as much information as possible. Our commitment to providing you with superior customer services can be demonstrated by our training and support programs designed to assist your Agent and in turn help you be the most informed Buyer you can be.
An offer to purchase property is a legally binding document, and should be explained to you in detail as you are filling it out with you Agent. You should always feel free to consult an attorney or tax advisor to obtain further information you deem necessary. We want you to be prepared, but also enjoy this exciting experience. Anything we can do to help, just ask!
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