When finally you have found your dream house, the next move is to create an offer. But how do you know that your offer is good enough from a buyer like you? A wise buyer need to know the art of negotiation through good offer. Likewise for the seller, they should know what constitutes a good offer.
Component 1: Price
Price is the first component of every offer. The vital information you need to start in every purchase transaction. Seller would always look up to the highest market value price for their homes while buyers are looking for the lowest possible price that they can find in the market. The aim of every purchase negotiation is to be able to meet half way and make both parties happy.
Component 2: Earnest Money
Earnest Money Deposit (EMD) is a proof of the buyer’s good intent on the purchase of the property. This is very important on the part of the seller. It benefits the seller later on should the buyer back out for no good reason, seller will be able to keep the amount. A buyer must know how to really make an offer that will surely make the sellers accept it. If offer is accepted, earnest money can help you with the closing costs and other expenses.
Component 3: Proof of Funds
Proof of funds shows the financial ability of a buyer. It is essential for the sellers to know if the buyer will be able to go through with the purchase. If it appears the buyer are unsure or incapable of continuing with purchase, sellers will lose valuable time on their property by taking them off the market list assuming the sale will be completed.
Component 4: Pre-Approval Letter
Same as Proof of Funds, an interested buyer should always come prepared in presenting their offer to the seller. If they choose to get a loan, they must first get an assessment how much they can offer and if they afford the terms of the loan.
Component 5: Inclusions and Exclusions
Both parties should be able to determine what is included and not in the sale. This phase is negotiable for both parties and must be clearly stated on the contract when making a deal.
Component 6: Close Time
Time is gold. All deals must have deadlines from start to closing of sale. Each step of the transaction and all person involved plays a vital role in completing the transaction. A Move in date must be established and the expiration of contract must be indicated. A successful sale is always one who follows timeline diligently. Of course, there are certain elements that might contribute to a few delays, the situation varies. This you can count on working on quality real estate agents.