You have now completed your search in finding the home you wish to purchase. Your HomeSmart Professionals Associate has been there for you, shown you properties based on your initial list of desirable features and narrowed your options. At this point, you will have found the home you want, and will be proceeding with an offer on the property.
There are a number of factors that will affect your decision on what to offer for the property. Market conditions are always a factor. For instance, if it is a “Buyer’s” market, you will have some more negotiating room for the property. In a “Seller’s” market, you may want to place your best offer up front in order to be the one chosen by the Seller.
Also to be considered are the values of the properties around the one that you are considering. These figures are typically called the “comps” or “comparables”. Your Associate will show you all of the properties on a list that have closed or are for sale currently in the vicinity of the property you are submitting an offer on. These comps must be analyzed and a realistic value for the property established. There will be an appraisal on the property after you have signed the purchase and sales agreement, and be aware that often what you are willing to pay for a property and what an appraiser determines as its value are two different numbers!
You will also want to establish the closing date, or the date you will actually become the owner, before writing an offer. If you are obtaining a loan, a Lender will generally need about 30-60 days to complete your loan, order and evaluate the appraisal, and furnish the closing documents. If you have been pre-approved, this time frame may shorten. Of course, you will want to give yourself ample time to conduct any inspections on the property prior to your preferred closing date. There are other terms to be considered when placing an offer that may affect whether or not the Seller is willing to accept the offer, or whether you are willing to accept the Seller’s terms.
At HomeSmart Professionals, we feel that you cannot enter into an agreement without the necessary information. Our commitment to providing you with superior customer service can be demonstrated by our training and support programs designed to assist your Associate and in turn help you be the most informed Buyer you can be.
An offer to purchase property is a legally binding document, and should be explained to you in detail as you are preparing with your Associate. You should always feel free to consult an attorney or tax advisor to obtain further information you deem necessary. We want you to be prepared, but also enjoy this exciting experience. Anything we can do to help, just ask!