I know making an offer on a home is like trying to speak Spanish decades after your last high school Spanish class. Some words are familiar… Fuego, Hola, Pantalones… but you’d be much better off finding a translator. The same goes for putting in an offer on your home. You need a real estate agent that can analyze the market, know what you’re looking for in a home, and write a competitive offer that protects you. You don’t have to be left in the dark, though. In fact, you shouldn’t be!
Here are 3 tips to help you speak the language and seal the deal on your next home purchase.
1. Price Your Offer Right
Remember, the market, not you (or the seller), determines how much a property is worth, so don’t try to lowball the seller. You’ll only offend them. Instead, look at comparable homes that have sold recently in the area and come up with a fair and reasonable price. Also, consider what repairs or renovations may be needed and if there are multiple offers on the table. You’ll have a better chance of having a seller consider your offer and accept it when you factor in all of these components into your pricing analysis.
2. Consider Your Contingencies Carefully
Contingencies are what protect the buyer in the home-buying process. The contingencies you write into an offer are designed to safeguard you (and your earnest money), not the seller. Everything from securing a loan to selling your current house to the closing date you choose could negatively impact the seller. If your market is extremely competitive, you’ll want to consider your contingencies very carefully. Think of your financing, home inspection, title, and appraisal. Sometimes people take significant risks and remove almost all of their contingencies to make their offers more appealing to a seller. Overall, aim to balance protecting your interests while keeping your offer attractive.
3. Create A Clean Contract
So many offers get declined by sellers simply because the real estate agent wrote a sloppy contract. Ultimately, the contract is the first impression you make. It’s a signal of how the rest of the transaction will go. No one wants to spend 30-45 days in escrow with a buyer who’s disorganized, dysfunctional, and in disarray. So make sure your real estate agent writes a clean contract that’s organized, simple, and complete. You’d be surprised by how many agents get this wrong.