7 Tips to Insure Buyers are Prepared to Write a Strong Purchase Offer

This blog post is written to help buyers know what a good agent should do for them before writing a purchase offer.  This assumes that the buyer has found a home they are preapproved to buy.  It also assumes that the agent has already done the legal work necessary to represent you.Count the total cost of buying.

1. The agent should have helped you understand the seller’s disclosure.  If there are any questions about the seller’s disclosure the buyer’s agent should get answers to those questions before writing the offer.  Read the seller’s disclosure carefully.  If there is something that is left blank make sure your agent gets the information you need.  Do not assume the best.  If there is a disclosure of a roof being repaired but you have little or no details find out exactly what was done.  

2.  Your agent should have done a comparable sales analysis of homes that have sold in the past three months that have sold in the same location as the home you hope to buy.  If there are no homes like yours that have sold the agent still should go outside the location and make the necessary adjustments.  A good comparable homes sale analysis will make sure your offer is reasonable and the appraisal is has a good chance of success.

3.  Your agent should explain that sellers of homes often care about the other details of a contract as much or sometimes even more than the price.  Price is foremost to most sellers however the other details can be very important.  Ask your agent if they are comfortable finding out what other details may be important before writing the contract.   A good agent begins to gather as much information as possible as soon as they know you have even a little interest in the home.  It may be that the owners have a deadline to move.  Getting this home to close ASAP good be a huge motivator for the owner.  It may be just the opposite.  The owner may be selling because the payments are too high because of a recent job change.  They may need to move badly but also want to keep their children in the schools as long as possible.  In this case you may get a great price if you are willing to close early and give the sellers a postclosing occupancy agreement.

4.  Your agent should have spent time helping you truly understand the importance of having an inspection and also the different choices for inspections.  I will write a blog in the future explaining the details of inspections in Kentucky.  The type of inspection you choose will have a big influence on the negotiating.  In the state of Kentucky you have three choices.  Briefly  those three choices are no inspection, an inspection that gives you the option to walk away if you find something you do not like and the last is an inspection in which you and the seller agrees to negotiate what will be repaired by the seller.  If you are buying a home to live in and need financing then almost always you will need to go with the third choice.l

A home inspection is most important.

Sometimes a problem with a home is obvious. Other times they are not. Do not assume anything. Get the home inspected.

 

5.  Your agent should make sure you understand that there are always possibilities of multiple offers.  The seller really determines what is done with those offers.  The listing agent by law needs to submit all the offers to the seller.  The seller decides what offer to respond to first.  The seller cannot in any circumstance accept more than one offer or even be negotiating with more than one buyer.  If negotiations fail the seller can go to another offer and if the seller comes to agreement on an offer they can then accept a back up offer.

6.  Your agent should explain the importance of the deadline which you give the seller to respond to your offer.  If you insist on giving the seller only a few hours you may cause the seller to be defensive from the very beginning.  Ask your agent to find out if the seller is in a situation so that they can respond easily.  If the seller is out of town and not very computer savvy you will need to give them more time.  If the seller is able to work with electronic signatures they may be able to respond almost immediately.

7.  Your agent should explain to you the advantages of sitting down with the seller and their agent when presenting the offer.  In my experience this can make a huge difference.  However many listing agents make this very difficult.  It is also true in today’s world of mobility that often this just is not possible.  Experience has taught me it is equally true that many listing Realtors just do not have the time or are not willing to take the time to meet with you and their selling client.  When it is possible to sit down I have found that negotiations go much faster and tend to be more successful.   It is my opinion that when discussing something that involves large volumes of money sitting face to face in negotiations is much more productive.  

 

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