4. Buyer Side RE Transaction - The Offer Alright! We are heating up! After doing some searching you have found a home that you would like to make an offer on. So what’s next and what are some things to take into account? Here are a few notes in general:
First, we need to have a look at the current market and what the owners are asking for the house to see if it’s fair. I will perform what is known as a Comparative Market Analysis, also known as a CMA. A CMA is a method I use to form an opinion about the value of the house. Once we have an idea about the value of the house, we will formulate a strategy for negotiations. This strategy will take into account a few different possibilities of how the sellers could respond to our offer. Having a plan will work towards eliminating any undue stress that could occur during the negotiations. Remember, ultimately it is your sole decision about how you would like to proceed with the negotiations and my job to execute those wishes.
Second, everything is negotiable. Major considerations can include but are not limited to: The Purchase Price, The Earnest Money Amount, The inclusion of a Home Warranty or a Termite Bond, and the Length of the Due Diligence, Finance, and Appraisal Contingencies. We can even negotiate if specific furniture or appliances are included in the sale. But remember that while you CAN negotiate on everything not everything is appropriate for negotiations.
Third, while the initial offer and counter-offers during this phase will cover most of the negotiations for the remainder of the deal, these are not the final negotiations. I will cover a few other instances of this as they come up in future videos.
In the next video, I will be covering the what happens when you go Under Contract!
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