Jun 13 2008
Getting ready to make an offer
We found a home that is PERFECT for us! How do we make a competitive offer? Are there prerequisites to making an offer?
The answer to this is question is rather complex. Depending on the parties and property involved, many details need to be assessed to make an offer "competitive." Some key factors you need to consider and prerequisite items are:
1) Competitive offers are not just based on price. A "clean" offer with a fast close, 20% or more cash down, and/or an as-is purchase are factors that help make your offer competitive. However, you should work with an agent who can advise you which options to include based on the specific home you wish to buy, your maintenance skills and time availability, and your overall financial situation.
2) Be sure you have discussed the anticipated purchase price with an experienced loan broker BEFORE your offer. Loans are difficult to get and a strong offer comes from a buyer who has already begun the approval process.
3) Making an offer over asking price may not guarantee you get the house. The market value should be researched carefully. If you offer a price well over the median value, the house may not appraise at your offer price. This means the lender may not be willing to give you enough money to purchase the house at the price you offered. Unless you have a cash to make up the difference, you may not be able to complete the transaction.
