In today’s competitive real estate market, it is essential to put together a great offer. A purchase offer, also known as a purchase agreement is a legal document that outlines the price you’re willing to pay for the home, how you intent to pay for it, and other key terms of the transaction. The key to success is to craft an offer that will stand out from the crowd. The goal is to have the seller take one look at your offer and say yes! As with anything else in this business, there are some secrets to making offers that stick.
Most importantly, it is crucial to know your particular situation inside and out. Each house on the market today has a story and a reason why it is being sold. Each seller and bank is different and is going to operate differently too. If you structure your offer the same way each and every time, you may miss out on some great deals.
Here are some things to consider when crafting your offer…
Order a CMA (Comparative Market Analysis)
Before setting the initial asking price, most sellers order a CMA. The CMA estimates the current market value of the home by evaluating recent sales of similar properties in the surrounding neighborhood.
Before you put in an offer, ask your agent to conduct a CMA. This gives you an idea of your local market which is crucial if the home has been on the market for a few months. It will also spot overpriced homes which will give you room to negotiate. Even if the home is priced fairly, your CMA gives you a reasonable starting point for an offer.
Consider Market Indicators
Beyond the results of a CMA, the amount of a time a home has spent on the market is a good indicator of buyer interest. The average home’s time on the market in your area offers insight into the overall state of the area’s housing market. It will help you determine whether it’s a buyer’s market, seller’s market, or neither. Homes will be on the market longer in buyer’s markets and sell faster in seller’s markets.
Your offer should reflect current local demand and be in line with other offers that the seller is likely to receive. When in doubt, ask your agent for guidance.
Take into Account the Seller’s Motivation
The seller’s personal motivations are just as important as the environment of the market. Some sellers need to move as quickly as possible and are often willing to accept substantially less than their asking price, particularly in buyer’s markets. Other sellers, such as those downsizing, are in no particular hurry and can afford to wait for the right offer.
For any questions you have about buying or selling a home, call us today at 614.855.8700 and speak with one of our real estate consultants!
For more information on making the perfect offer, click here.