Preparing a First Offer to Purchase

🏡💲📃 You finally found the home you've been dreaming of and you cannot wait to put in an offer to buy. But how do you determine what the true value of the home is worth? Do you take the seller's word and offer asking price? Or is it better to always undercut the listing price by 10%?

This is an interesting topic, as it seems everyone has an opinion on how to buy a house. Many make the mistake of using a "one size fits all" approach. This is outdated advice.

Before you write down a price, get with your agent and have them pull some "comps." This will help you get an idea of the true value of your target home. Other indicators like "days on market" and the "sales price/list price ratio" also will give helpful insight in determining if the seller is listing their home too high, too low, or at market value.

Be sure to ask your agent to talk to the seller agent and try to determine the seller's motivation for selling. Do they need to unload the property immediately, or are they trying a wait and see approach. This will give helpful information that a buyer can exploit if done properly.

Perhaps more important than the seller is other buyers. Buyer competition is something you need to be aware of. If the home appears priced reasonably, you can bet another buyer is looking at it too. It may be best to act quickly and present a strong offer to the seller. This approach may prevent a multiple offer situation that would otherwise inevitably happen if you were to try to get the home several thousand under list price. Other buyers may make the same mistake, but if you come out strong and fast you can beat them to the punch and the seller will accept your offer before even receiving others.

How bad do you want this home? It is wise to determine what your absolute final and highest amount is BEFORE you present your first offer to purchase. Then the hard part... stick to that number. You do not want your emotions running your wallet here. If not managed, you can easily overspend by thousands of dollars.

Lastly, a quick thought from me on the art of negotiating. Too many people thing of negotiating as a competition. It is not. Negotiations are just tools to help two parties get what they need. A seller needs to sell a house. A buyer needs to buy a house. It is that simple. Unfortunately many people try to nickel and dime the other to a point of contention, causing a lot of anger, grief, and stress. It doesn't need to be this way. Instead of trying get a bigger piece of the pie, work together with the seller so that both of you have a big piece of the pie. Cheesy, I know. But very true. Go in with an attitude of wanting to work together and I guarantee you'll have an easier less stressful time.

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Видео Preparing a First Offer to Purchase канала Jesse Nicholas