After you have researched and looked at all the homes that you and your HomeSmart agent have found that fit your needs, you have found the one you want! Now you have to decide how much you want to offer for the property.
There are a number of factors that will affect your decision. Market condition is one of them. If it is a “Buyer’s” market at the time, where there are more sellers than buyers, you will have more negotiating room since the seller wants his to be the home you buy. In a “Seller’s” market, where there are more buyers than there are homes to buy, you will want to place your best offer up front in order to be the one chosen by the seller.
Comparable prices or "comps" of the area are also important. Your HomeSmart agent will research the properties that are currently for sale or that have recenty sold in the vicinity of your subject property to establish a realistic value. Your lender will order an appraisal of the property after your offer is accepted, and this appraisal will determine the ultimate value of the home. The appraiser uses similar comparables as your HomeSmart Agent in determining the value. Your lender will not make a loan for higher than the appraised value, so you want to make sure your offer is realistic. If you are paying cash, this would not apply.
Other terms to be decided when writing your offer are things such as inspection time frames, the close of escrow date, who is paying for the Home Warranty etc. Your HomeSmart Agent will help you determine what the best terms will be to get your offer accepted. There are some constraints however, depending on your lender's time frame for your loan.
An offer to purchase property is a legally binding contract. All the terms and conditions should be explained to you in detail by your agent. You should always feel free to consult an attorney or tax advisor before making a decision. At HomeSmart we feel that you should not enter into an agreement without as much information as possible. Our commitment to providing you with superior customer service can be demonstrated by our training and support programs for our Agents designed to help you be the most informed Buyer you can be. We want you to be prepared so if there's anything we can do to help, just ask!
Remember...it's a Smart Move with HomeSmart!