Tendering an Offer
You have spent lot of time and energy identifying and selecting the property that you like.
Now comes the most difficult aspect of closing a home deal.
You have to decide the amount you need to offer to the seller.
An offer less than the expectations of the seller is not expected to go down too well while an offer on the higher side shall cause an avoidable hole in your pocket.
Either ways you have to be careful while approaching this exercise.
Take the Real Estate Agent's advice Most buyer depend upon their real estate agent in quoting the final price.
It is very likely that your agent would be hesitant to take this responsibility but certainly make use of his valuable experience and advice before making the final offer.
The realtors are likely to tell you about the general momentum in the market, market information and the direction in which prices are expected to move in the immediate future.
Try and find out why the seller wants to sell Though this information is hard to come by and most of the listing agents would not be willing to share this information with you, it is yet possible to get a hint about the reason for seller's need to sell by intelligent questioning and engaging him into a conversation.
Getting to know the outstanding mortgage amount is essential.
Lower the mortgage balance, better is the negotiating power available to the seller.
On the other hand, in case the mortgage outstanding is very high and the current house that he is willing to sell is vacant, it is but obvious that he is facing the financial heat of paying the mortgage out of his pocket.
Details of Actual transactions in the vicinity Speak to other real estate agents or realtors to find out the actual prices at which comparable properties have been sold.
You should try and get the actual costs at which the transactions were closed.
The property that you compare must be as close to the current location, age and size.
Do not relay too much on sales made more than 3-4 months ago but just keep it at the back of your mind before making the final offer.
Get details from the listing agent Speak to the listing agent to get details about the period since which the property has been listed for sale.
Also find out in case the property has been re-listed since it did not get any prospective buyers during the first listing.
All such details would help you understand the eagerness of the seller to sell and put you in the driver's seat during negotiation process.
Do not rely on just one property if you are serious in your intentions to buy.
Getting emotionally attached to the property would be of little help.
Identify and select at least a couple of properties before making a final offer and getting to the negotiation table.
Keep contingency measures ready as pat of your negotiation strategy once you make the final offer.
Now comes the most difficult aspect of closing a home deal.
You have to decide the amount you need to offer to the seller.
An offer less than the expectations of the seller is not expected to go down too well while an offer on the higher side shall cause an avoidable hole in your pocket.
Either ways you have to be careful while approaching this exercise.
Take the Real Estate Agent's advice Most buyer depend upon their real estate agent in quoting the final price.
It is very likely that your agent would be hesitant to take this responsibility but certainly make use of his valuable experience and advice before making the final offer.
The realtors are likely to tell you about the general momentum in the market, market information and the direction in which prices are expected to move in the immediate future.
Try and find out why the seller wants to sell Though this information is hard to come by and most of the listing agents would not be willing to share this information with you, it is yet possible to get a hint about the reason for seller's need to sell by intelligent questioning and engaging him into a conversation.
Getting to know the outstanding mortgage amount is essential.
Lower the mortgage balance, better is the negotiating power available to the seller.
On the other hand, in case the mortgage outstanding is very high and the current house that he is willing to sell is vacant, it is but obvious that he is facing the financial heat of paying the mortgage out of his pocket.
Details of Actual transactions in the vicinity Speak to other real estate agents or realtors to find out the actual prices at which comparable properties have been sold.
You should try and get the actual costs at which the transactions were closed.
The property that you compare must be as close to the current location, age and size.
Do not relay too much on sales made more than 3-4 months ago but just keep it at the back of your mind before making the final offer.
Get details from the listing agent Speak to the listing agent to get details about the period since which the property has been listed for sale.
Also find out in case the property has been re-listed since it did not get any prospective buyers during the first listing.
All such details would help you understand the eagerness of the seller to sell and put you in the driver's seat during negotiation process.
Do not rely on just one property if you are serious in your intentions to buy.
Getting emotionally attached to the property would be of little help.
Identify and select at least a couple of properties before making a final offer and getting to the negotiation table.
Keep contingency measures ready as pat of your negotiation strategy once you make the final offer.
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