When you find the home you want to buy, the next step is to place an offer on that home. The offer includes the price you are willing to pay, the amount of closing cost assistance you might be asking the buyer to provide, and a proposed date of settlement.
Our team can work closely with you to determine a fair offering price. If your offer is too low, the seller may not consider it or you may be beat out by another potential buyer. At the same time, you don’t want to pay more that you have to, so we can offer guidance based on the sales of comparable homes in the area and the number of days the home has been on the market.
In the current market, sellers are often willing to pay for some of your closing costs, which can help reduce the amount of cash you need to come up with for settlement. Again, we can offer guidance, based on current market conditions, local trends and the overall price of the home. The greater the cost of the home, the larger the amount a seller is often willing to pay.
Your settlement date can be a great bargaining tool. If the date is based on the sale of the home you are currently in, your offer may not be as appealing as someone without this type of contingency. In this case you may want to balance this offer with a very fair offering price and a reasonable request for closing-cost assistance. You will also want to show that your home is currently on the market.
If you don’t have a home to sell first, you are in a better position and can offer a broad window for settlement such as “no later than June 1” on an offer made today. This gives the sellers greater flexibility for their planning.
Another tip: Make your offer personal. Along with the offer, include a letter describing what you love about the home and why you believe it is the right home for you. Most sellers still hold an attachment to their homes, even when their homes are on the market. They may be swayed by someone who will continue to love and care for their home the way they did.
Any questions? Call us at 410-381-3331.