Lately I have found myself working with many buyers of all price ranges and living situations. Its truly been a great experience assisting people of all walks of life achieve their goal of home ownership. However, one thing I have found with all of these different buyers is their hesitance to utilize making a dream offer on a home they are interested in as a way to gauge a seller's situation or possible purchase price of a home. This hesitance them at a disadvantage when searching for a home because they do not utilize the information gathering power of the offer. Its been through my years of experience that I now encourage my buyers to make offers liberally. I will briefly explain my reasoning in this short article.
Now before I begin I want to make it very clear that an offer is a LEGAL document that, if accepted by the seller, creates a LEGALLY ENFORCEABLE contract to purchase the home,so an accepted offer is not something you can just return like something from Target. The offer should be seen as the official way for the buyer to engage the seller of the home in negotiations with the end goal of both buyer and seller coming to an agreement to create a contract. With that being said, I will also say most offersI send out do not get accepted on the first submission, but rather after several correspondences between both parties as the terms are settled. This part of the negotiation process is where most deals are made, but unfortunately most buyers do not take the first step and submit the initial offer that starts this conversation.
You might be wondering why would I tell my buyers to submit MORE offers? Lets start with the fact that to submit an offer costs nothing to the buyer. Now of course, if the seller accepts, you need to be ready with escrow and option money.This non-cost of sending an offer I believe is something that is either not considered enough or maybe not known. For instance, most people do not know my services as a Realtor® are free to you as a buyer. That's another article though. Either way the end result is a buyer that is not exercising the power of the offer in order to workout the purchasing situation in order to fulfill financing or deposit needs.
When you send an offer there are three things that can happen: they accept, they counter, they say no/ignore. The most common response, if they are looking to sell, is always to counter which is their response to your terms with their changes. With you being first to act in this process as the buyer,this allows you to present favorable terms, not just in price, and see what is left in your favor from a counter. This can lead to savings in the thousands for the buyer that are not derived from a simple price decrease. In any type of negotiation, knowledge is power, and my belief is some of this information is only obtained through an offer.
An offer gives the buyer information as to the seller's situation or desires. While many clues can be gleamed from a property's information sheet such as days on market,there is no truer method to check a seller's true situation by simply sending an offer. I one time sent an offer my buyer was hesitant to send only to have it accepted the next day with no change in terms! I found out later that the seller was in need of money so took a deal they wouldn't have normally had they more time. The simple truth of the matter is that until you send the offer, you will never know if the seller maybe needs to sell now due to a growing mortgage or other circumstances that could lead to your favor.
I do hope this article has helped you now think of the offer and its benefits in a different light now after reading. The offer is a powerful tool for a buyer to utilize when buying a home for value. Although this article is in no way a guarantee you will be able to buy a $500,000 home for $100,000, it hopefully has shown you that in real estate the worst thing a seller can respond to your offer with is 'no.'
Author:Antonio Villeda Phone: 956-331-9329 Dated: September 7th 2017 Views: 55 About Antonio: ...
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