Making an Offer
Before the offer to purchase is created, it is very important that you have been at least pre-qualified or better yet pre-approved by a lender.
This is one of the best negotiating tools a buyer can have. It shows the seller that you are financially able to purchase the home. After you have found the right home, it is time to prepare the offer.
When you are buying a home, there are many problems that the seller is obligated to disclose. For example, in most states, it is illegal to withhold information about major physical defects on the property, but these disclosures don't always paint the entire picture of the home. Here are a few questions you may want to ask that can offer additional insight about the prospective home before you make a final decision.
It is always in your best interest to hire your own real estate agent, one who is working for you, the buyer, not the seller. it is a common misconception that contacting the listing agent directly will get you a better price or that your detailed questions about the property will answered more completely by them. Remember, the listing agent's primary professional obligation is to the seller, or property owner. You should always have your own representation. An experienced agent will know how to get the answers to these questions and will negotiate on your behalf.
1) Why is the seller selling the house? This question may help you evaluate the "real value" of the property. Is there something about the house the seller does not like or are there impending major repair issues, such as an old roof or furnace? If so, you may be able to adjust the purchase offer accordingly.
2) How much did the seller pay for the home? This question can, in some instances, help the buyer negotiate a better deal-maybe even get the seller to carry part of the loan. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.
3) Are there any current or upcoming neighborhood issues? Use this answer to find out about noise, heavy street or airplane traffic, or planned changes to the community, such as a street widening or nearby development. This may give you insight on why the seller is really moving.
Knowing all you can about a prospective home, not only helps you decide if it's the home of your dreams, but what offer to make as well. Your Tailored Real Estate Group Agent can help you get your key questions answered and give you advice on how to evaluate your findings.