MAKING A WINNING OFFER
Once you have found a home you want to purchase, you will need to make an offer to buy it…a starting point per se to begin the negotiations. Remember to be realistic. You don’t want to make an offer that’s too low and insulting to the seller, but you also don’t want to pay too much for the property.
In considering your offer, take into account some these key factors:
· Type of Financing
· Your Time Frame to Move
· Property Taxes
· Repairs
· How Long the Home Has Been on the Market
· Were there any Previous Offers on the Home
· What is the Fair Market Value
· Home Sale Activity
Making an offer on a home is exciting but also a very complex process. Be sure you become familiar with the real estate and housing laws in Ohio, legal paperwork required and your rights as a homebuyer. Your REALTOR can assist you in these matters and keep you on track to making a winning offer.
Protecting Your Interests
There are specific disclosure laws that homeowners must comply with in the State of Ohio when selling real estate. These disclosures should be reviewed prior to making your offer to purchase, as they could have an impact on the price and terms you offer. Your REALTOR will make sure you have the information you deserve.
What to Offer
The advertised price or list price is the number to start with. Remember, the more competition there is for a home, the higher the offer should be. It’s up to you to decide how much to offer for the home, but your offer should be based.
Your REALTOR will help you determine a fair price to offer by preparing a CMA (Comparative Market Analysis). This report compares similar properties that have sold in the area and properties currently on the market in relation to the home you’re interested in purchasing.
A CMA is excellent guide in determining if the home you’re interested in is priced too high, fairly or below market value. From there you can make an informed decision on what price to offer and work towards successful negotiations.
Contingencies
In addition to price, there are contingencies to consider. Contingencies are events that must take place within certain timeframes. These contingencies could be for home inspections, possession date of the home, financing, attorney review, third party approval, appraisal, home sale, or other event that must occur.
Contingencies can protect you by making sure your risks are being limited and that you are protected as much as possible. Contingencies are built-in protections.
It is important that you understand the various types of home buying contingencies, as they can have an impact on your offer being considered and the purchase of your home.
Once the offer price and contingencies have been decided and a written purchase offer is prepared, your interest to purchase the home needs to be communicated to the seller. Your REALTOR will present the written offer to seller’s representative or listing agent.
At this point, the offer can be accepted, rejected or the seller can choose to counter some of the items in your offer, such as price, timing, etc.
If they accept, then you begin removing the contingencies and head towards closing on your new home.
If they reject the offer, the negotiations end. As long as the seller didn’t accept an offer from another buyer, you could submit a newly written offer to purchase.
Sellers often counter an offer in terms of dates, financing, price, or other items they choose.
Counteroffers
Offers can be countered several times by both parties until all terms and conditions have been agreed upon. Once negotiations are complete and all terms and conditions agreed to are in writing, the offer becomes final, is signed by all parties becomes a legally binding contract.
Earnest Money Deposit
Once there is a binding contract to purchase the home, an Earnest Money Deposit may be required by you to show “good faith” and solidify the contract. This deposit gets credited back to you at closing. Your REALTOR can advise you on the amount required, if any, and help you with a contingency to be included in your contract to protect your deposit and your interests.
Making an offer to purchase begins the negotiations and is an
important step to your new home