Making a Sound Offer
Price and Terms
Realtor groups, working with legal counsel, have
developed forms that are appropriate for real estate
transactions in most areas. Such documents include various
sale conditions and their wording should be carefully
reviewed to assure that they cover the terms you want to
offer. Realtors can explain the contracting process in your
community as well as their role.
While much scrutiny is spent on offering prices, a proposal
to buy includes both price and terms. In some cases, terms
can render thousands of dollars in additional value for
buyers -- or additional costs. Terms are very important and
should be carefully reviewed.
How Much?
You sometimes hear that the amount of your offer should be a
certain percent below the seller's asking price or another
amount less than you're really willing to pay. In reality,
the offer depends on the basic laws of supply and demand: If
many buyers are competing for a home, then sellers will
likely get full-price offers and sometimes more. If demand
is slow, then offers below the asking price may be in order.
How Do You Make an Offer?
The process of making offers varies in different
communities. In a typical situation, you will complete an
offer that your agent will present to the seller and their
representative. The seller, in turn, could accept the offer,
reject it or make a counter-offer.
Because counter-offers are very common (any change to an
offer can be considered a "counter-offer"), it's important
for buyers to remain in close contact with their agent
during the negotiation process so that any proposed changes
can be reviewed quickly.
Home Inspections
A number of inspections are common in realty transactions.
They include checks for termites, plumbing, electrical,
surveys to determine boundaries, appraisals to determine
value for lenders, title reviews and structural inspections.
Structural inspections are particularly important. During
these examinations, an inspector comes to the property to
determine if there are defects and whether expensive repairs
and replacements are likely to be required in the near
future. Such inspections for a home often require several
hours, and buyers should attend if possible. This is an
opportunity to examine the property's mechanics and
structure, ask questions and learn more about the property
than is otherwise possible.
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