Offer & Negotiate

By the time you are ready to make an offer, you should have already:

• Received a Pre-Approval letter from a reputable mortgage company

• Entered into an agreement for Buyer Representation

• Selected a "2nd option" home

Your Offer
Now you are ready to discuss the terms of your offer with your Buyer Representative. It is important that your offer is clear and concise. The more difficult your offer is to understand, the more difficult it will be for the seller to accept. You will need to consider and discuss the following to make a good offer:

• Offering Price: Sellers are most likely to look at the price of your offer before other terms. It is important for you to make an offer you are comfortable with and that takes into account current market conditions. Your Funkhouser Real Estate Group Buyer Representative can help you establish this offer price based on market data.

• Assistance: Some buyers, especially first time home buyers, will ask the seller to assist in paying for expenses such as closing costs. If you decide to request this assistance, understand these expenses to the seller will affect their net proceeds and shift a greater burden to the negotiations of the offering price.

• Deposits: Your deposit amount indicates your commitment to the purchase of the property. A seller may look at a small deposit as less desirable and less likely for acceptance. Discuss the appropriate deposit amount with your Funkhouser Real Estate Group Buyer Representative.
  

• Settlement & Occupancy: Based on your purchasing timeline, you will need to decide on suitable settlement and occupancy dates. These dates will also need to be suitable for the seller. If occupancy needs to occur prior to settlement, you will need to make this part of your offer and have the proper agreements executed.

• Personal Property: Buyers often find items in a home they wish to have stay with the home after purchase. Although sellers may offer certain items during the marketing of a home, it is important for your offer to include both the items you would like to request as well as the items the seller is offering. The ratified contract must clarify both the buyer's and seller's expectations.

• Contingencies: A contingency is a condition that must be met before a contract is legally binding. Typical contingencies include financing terms, home inspections, radon or lead inspections and the sale or purchase of another property. Each of these contingencies adds another level of risk to the seller and can make your offer less desirable. Discuss with your Funkhouser Real Estate Group Buyer Representative what contingencies may or may not be appropriate with your offer.

Negotiations
Each seller may have different motivations. There are several negotiation approaches to make your offer standout. Discuss possible seller motivations and negotiation approaches with your Funkhouser Real Estate Group Buyer Representative.

• Starting Down The Right Path: Negotiating a contract can be a long and difficult process if your first offer does not start down the right path. Extreme offers generate cold responses from sellers and can create a difficult environment for future negotiations. Discuss with your Buyer Representative what a fair offer might be so that you can arrive at a mutual destination with the seller. Ask yourself how you would respond if you were the seller of this property.

• Time Limits: Placing time limits on an offer can be both advantageous and dangerous. Time limits should be dictated by the current market condition and known seller motivations. Discuss with your Buyer Representative whether a time limit on your offer would be beneficial.