Preparing to Offer, Preparing to Negotiate
When you find the right home, I will take you through a step-by-step process to help you make the purchase. You know the seller's selling price, now you need to make some decisions.
You may be in a strong bargaining position to make an offer below asking price if, for example, you are paying cash, or have be pre-approved for a loan.
I will do my best to find out why the home is on the market. For example, if the seller is moving for job-related reasons or is divorcing, they may be in a hurry to sell. Alternatively, if the seller is in no hurry or "just testing the waters", nothing short of a full price offer may do. We'll need to be in constant contact during the negotiating period Things can change quickly. Here's what you need to do first.
- Decide how much you should offer. Consider factors such as the home's length of time on the market, resonableness of price, availability of financing and other costs.
- Know what happens to your earnest money. The earnest money deposit shows that you're serious about buyig the home. This deposit is held by a third party such as your Sales Associate's brokerage, title company or escrow agent untl the sale is closed or contract is cancelled If you buy the house, it is applied to the down payment or closing costs. If you fail to buy the house after the seller has accepted your offer, he or she may have the right to keep this deposit. We will discuss this strategy.
- Require the seller to do a title search to prove the title is clear. The title should show no substantial claims or liens against the property.
- Decide what type of deed you want You'll most likely specify that the seller convey the property to you with a general waranty deed that transfers oweenership rights (or title) to you.
- Decide what condtions (contingencies) you wnt to place on buying the house. Your purchase may be made continent on obtaining obtaining financing, a builder's inspector's satisfactory report or selling your present home. Real estate contracts today already include many of the typical real estate contingencies.
- State what you're buying. Common items to be specified in the contract include appliances, light fixtures, shades and drapes, and flowers shrubs and trees. But be ready. All these can become negotiating points.
- Determine what special provisions should be inclded, such as property taxes, insurance costs and utility bills. Read all the small print.
- Determine the closing date and possession date you want. I can tell you who typically acts as a settlement agent in your area. Allow yourself plenty of time for financing and all the paperwork in the transation.
