Making an Offer
Once you have found the property you want, we will write a purchase agreement. While much of the agreement is standard, there are a few areas that we can negotiate.
What you offer on a property depends on a number of factors including its condition, length of time on the market, buyer activity and the urgency of the seller. While some buyers want to make a low offer just to see if the seller accepts, this often isn’t a smart choice, because the seller may be insulted and decide not to negotiate at all.
If you can be flexible on the possession date, the seller will be more apt to choose your offer over others. When the seller has a very specific time frame for moving, the buyer has the upper hand and can leverage this by being more flexible with the closing date and less flexible with the offer price.
Often, the seller plans on leaving major appliances in the home; however, which items stay or go is often a matter of negotiation.
Earnest Money Deposit
It is in the seller’s best interest for the buyer to put as much into escrow as possible, so a buyer who is willing to put more into escrow up front may be able to have a stronger position when negotiating the contract.
Most offers are contingent on the outcome of the home inspection and necessary repairs. Depending on the complexity of the repairs, you may ask the seller to make the repairs prior to closing (subject to a follow-up inspection), deduct the repair costs from the sales price, or pay a lump sum at closing to cover the costs. Keep in mind that with an “As-Is” Contract, you are purchasing the home in it’s present condition at the time of contract. The Home Inspection contingency allows up to 15 days for a buyer to cancel the contract if they are unhappy with the home inspection report findings. If major issues are found that were previously unknown, it could be an opportunity for further negotiations with the seller, but the seller is not obligated to fix anything if the home is being sold as is.
Typically, you will not be present at the offer presentation – we will present it to the listing agent and/or seller. The seller will then do one of the following:
- Accept the offer
- Reject the offer
- Counter the offer with changes
By far the most common is the counteroffer. In these cases, our experience and negotiating skills become powerful in representing your best interests.
When a counteroffer is presented, we will work together with you to review each specific area of it, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf.