So you've found that perfect house! Congratulations. The next step is to prepare your offer for the purchase of your dream home. Here are a few quick tips on how to increase the odds of successfully purchasing your dreamhome.
1. Digging for Information
The main components of the offer you're going to put together arethe purchase price, deposit, closing date and conditions. First, have your agent contact the listing agent to find out what their closing date preference is and probe about the price. You'd be very surprised at how much information some agents are willing to provide when you simply ask questions. It's unfortunate for their clients but works out for you and that's all that matters (ps. make sure you hire a good agent who wont divulge your inner most secrets about the selling price of your home when it's time to sell).
2. Conditions or No Conditions
You now knowthe preferred closing date, the listing agent has already told you they'd accept $5,000 less than asking (ps. if they gave you this information it means there's definitely more money lefton the table)and there are no other offers soit's safe to say you can include a few conditions to protect yourself. Common conditionsinclude a home inspection, mortgage approval and, in the case of a condo, reviewing the status certificate.
In the event that you're competing against other offers, removing one or more of the conditions may make your offer significantly more attractive than those you're up against. As an example, by having a condition allowing you 5 days to complete a home inspection the seller essentially takes the home off the market during that time to allow you to do your inspection. Should the inspection come back with less than positive results and you cancel the deal, they're back to square one. If you remove the conditions with the initial offerand they accept it,it becomes "firm" at the time of signing. They can crack the champagneon the spot and relax. Thefirm offer will oftentake precedenceover competing offers with higher purchase prices that have conditions included.
3. PRESENTATION (Check out our video about presenting in person in Quick Tips episode 19 here)
MOST IMPORTANTLY -- Make sure that when you have your offer ready, your agent does everything in their power to present the offer in person. With the convenience technologymany real estate agents have become lazy and resort to scanning and emailing offers while they go out and have a few drinks with friends. The best agents will sit down with the seller at their kitchen table and hash it out until you have a deal. Don't entrust your largest investment with a lazy agent. It's also a great idea for you to attend the offer presentation in person. By waiting outside in your car it shows your level of commitment to the sale, the sellers will appreciate your extra effort and your odds of winning the bid increase 100X.
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