We Found Our Dream Home Now What?
You found the home of your dreams! What happens next? As a buyer, you now want to position your offer to it is accepted by the seller.
What's the Process?
The best way the understand how this works is to, first, think like the Seller. You and your Realtor want to plan your offer to see what benefit you can provide to the seller? The seller has a few choices when they get your offer. They can accept it, refuse it, or counter it.
Price and Terms
What matters to most sellers is PRICE and TERMS. They want the most money, of course, and the best terms to know they will get to the closing table. This is all negotiable and as a buyer it can also benefit you. In choosing an agent, be sure they are experienced in negotiations, have a level of empathy and truly want to get you the home of your dreams!
Let's Consider a Scenario that Could Occur
Again, I can't reiterate enough how important terms are to a seller. Let's look at the following potential situation. You and the a seller agree on a price for their home, but you put in the contract a contingency that you must sell your present home before you close on the seller's home. While this might seem reasonable to you, the seller has other ideas and doesn't want to take their home off the market and wait for you to sell your home first. Granted, some sellers will wait and that will all depend on what is happening in the market, what the inventory is and how many buyers are ready to purchase and move forward.
Sellers will only accept terms that meet their own needs, so keep contingencies to a minimum, if at all possible. Consult with your agent to find out from the seller's agent what terms will be most favorably viewed by the seller. There are many creative ways to purchase without a contingency, so consult your financial team as well to see if there is another option for you.
You may encounter multiple offer situations. Don't let that worry you too much. The seller is not under any obligation to negotiate with the first buyer who submits an offer. Don't panic if another offer is on the table. Because the seller has the liberty of choosing the best offer to negotiate and your offer stands a chance of being noticed with great terms.
The seller will accept an offer that meets their needs. Sellers will consider all of the following: price, financing, closing dates and possession dates. Keep in mind that it is not always the highest price that will buy the home. Sellers will consider not only price but may want a quick closing, may want to keep possession after closing for a few days, or they may wish to exclude items in the home. So, again try to put yourself in their shoes and make your offer enticing.
A buyer may make the highest offer, but perhaps has not been qualified by a lender or even provided a preapproval letter. If a seller accepted this offer, it is at risk of not ultimately closing. If the offer falls apart when the buyer fails to qualify, the home has now lost valuable marketing exposure and advantage. Be sure to get preapproved before making your offer and looking at homes because depending on the market, many sellers won't consider your offer without it. Present this letter with your offer, shows your seriousness and ability to keep moving forward.
What Else Is Important to a Seller
There are many times that price is not the most important thing for a seller. They may, for example, have children in school and they prefer not to relocate their family until the end of the school year. Your ability to negotiate on this item might be more important to them than coming up with the highest price for the home. You can offer a short-term lease post-closing and allow them to stay for a certain period of time, or offer to delay possession to accommodate your seller.
One thing you can do to get the seller's attention, is to first hire me as your agent. When I present your offer, I will write a compelling letter from the heart, so we can show the seller the benefits of your offer by hitting their hot buttons and presenting you as the perfect person for this home.
Deadlines Can be Deadly
Be very careful about giving the seller a deadline. Consult your agent on this item because there are many reasons to use it, but on the other hand some reasons not too.
Don't Lose Momentum While Negotiating
Important things to consider:
1. The seller's agent does not need to inform you or your agent that there are other contracts on the table. However, most sellers agents will let us know if there are other offers because they want to create an auction or a bidding war.
2. Sellers try to use multiple offers to improve the final sale price. So they may ask for your final and best offer.
The takeaway here is to respond promptly when negotiating. Don't nickel and dime the seller with simple repairs and contingencies that aren't necessary. Remember, you of course, want a sound home with no surprises. What is most important are mechanical and structural issues, not the color of the home or little things you can change yourself.
I always write offers for buyers asking for a home warranty so your first year is stress free in case there are any surprises that pop up.
Is the Cape Fear Market and Brunswick Island areas hot or cool right now?
The market is still busy and we are still seeing multiple offers because inventory is low. Hot markets come and go, so each month we get reports to tell us what is happening with inventory, sales and pricing. What is most important will be comparable sales in the area you are looking to purchase in. Ask me to provide you with the home's history or a history of comparables in the area. I will pull the most up-to-date information from our multiple listing service.
Be Sure to Consider the Future Affordability of Your Potential New Home
Always be sure to look at all your costs when negotiating. Don't forget about your moving costs, updates you may want to do, large purchase items you might need. This also includes your monthly payments, insurance and taxes. You still want to be able to do other things then just pay for a house. What I'm try to say is you don't have to purchase at the top of your range to be happy. Think about your budget and the lifestyle you want to build for yourself.
It might be that it is smart to simply give up and move on to another home based on what each of you (buyer and seller) want and perhaps can't come to terms on. Some sellers, will simply make unreasonable demands. Some will even demand offers beyond those which can be justified by comparables from the past sales data in their area/community.
We will work together to make sure your offer is accepted, I have a Buyer's Home Guide that can help step you through the process of purchasing a home. You might be a first time home buyer, a move up buyer, or someone who hasn't bought a home in 30 years. Between my guide and 22 plus years of experience, we'll get you in the home of your dreams.
I'll will treat you like family, guide you through the process and help you start a new beginning.
Experience doesn't cost.....it pays off!
To download my guide CLICK HERE
Authored by Sandy Beals