Determine Which Contingencies To Include in Your Offer
Here are the main contingencies you can have in your offer. We’ll discuss the pros and cons of removing one or more contingencies while protecting yourself.
You’ll be pre-approved before you make your offer
Buyers with large down payments sometimes remove this contingency
It’s essential to know what condition the house is in. Most sellers will have a full set of home inspections and reports as part of their disclosure package.
We’ll make sure you have clean title free of current liens
Particularly important to set up insurance when you make an all-cash purchase
Your Offer Strategy Depends On How Many Offers A Home Receives
If you’re the only bidder, you can get the home at a lower price than if you’re competing with other buyers. Homes in a sellers’ market sell within 7-14 days and for 10-40% above asking price. Homes on the market for 30 days or more generally sell for less than their initial asking price.
It’s up to you to decide how much to offer and what terms and conditions to include. We’ll be able to give guidance based on sales activity of other home which have sold
One valuable strategy is to write several offers at different price points, submitting the lowest if you’re the only bidder, and the highest if there are many offers. We’ll discuss that when writing your offer.
How Much Should You Offer?
We respect the fact that it’s your money and your decision what to offer.
We can estimate probable sales price based upon list price, current market conditions and buyer demand. We’ve found that sales prices is very dependent upon how many buyers make an offer.
As more buyers submit offers, the final sales price increase.
As a listing agent, after we tell a buyers’ agent that the seller has accepted a different offer, they say “their buyer would have paid more”
Imagine I’m calling you the day after the offers have been presented. Two things can happen:
The Seller Decided To Counter Of Accept Your Offer
You may feel you paid too much. The seller accepted your offer because it was better (usually price, also terms) than anyone else’s offer
The Seller Accepted Another Buyers’ Offer
After we tell you this, if you feel that you would have paid more, consider increasing your offer price before we present it.
Sometimes It’s Best to NOT Make An Offer
We sometimes hear buyers say “It can’t hurt to make an offer”
There are times when writing an offer works against you.
If there are multiple offers on a home, and you write an offer near asking, there’s low probability of the seller accepting your offer.
The effect of writing your offer increases your final sales price.
A buyer who really wants the home will know that you’d made an offer, even though they won’t know what it was. They’ll know that more offers means a higher sales price, so they’ll increase their offer price.
The home sells for more than it otherwise would have, and the next seller lists their home higher than they would have otherwise done.
My Nobel Prizes In Real Estate
I receive my first Nobel Prize in Real Estate for this discovery:
Heisenberg Uncertainty Principle Of Offers
The act of writing an offer on a home changes the home’s final sales price… even if you’re uncertain as to what the other offers are.
My second Nobel Prize in Real Estate was for:
Quantum Theory Of Offers
After you write an offer, the buyer either gets the house … or doesn’t. There’s no other state.
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