Tried and true home-buying tips on making an acceptable offer for homes on the Treasure Coast.
When most buyers, especially first-time home buyers, think about making an offer on a home, the first thing that usually comes to mind is the purchase price. And make no mistake, the price you pay for the home is important, but it is only one of many factors that determines how attractive that offer may look to a seller. If you are looking to buy homes on the Treasure Coast, this article should provide some interesting information. While it is specifically written for our area, you can really use this blueprint in most states in the US.
Put Ample Amount of Skin in the Game
Part of a great offer includes an Escrow Deposit, where the buyer of the property gives funds to a third party as good-faith money in the event that they default on the contract. Think about it, if you are selling a home, when you accept an offer you are effectively taking your home off the market. If you're going to commit like that, you will want your buyer to be as committed as you are. If you have a question about specific amounts, contact us.
Plan the Closing Date Appropriately
Talk to the seller about their plans before you make an offer. That way, when you make an offer, everyone's timelines already align. If you have to wait six months to close, that may not work with the seller unless they have similar plans. Whatever the case, you want to have an idea where the seller stands so that you can make the best home offer possible.
Get Pre-Approved for a Favorable Financing Option
There are many different ways to finance real estate, but you should be pre-approved before you even think to look at homes. Not only because you want to know what you want to spend, but also because you never know which loan program will be the most advantageous for you and what homes will suit that financing. When a home seller sees that the offer is contingent on the buyer getting financing for the property, they want to ensure that (1) the loan officer is reputable, (2) the buyer is qualified, (3) the timeline for the approval is sufficient, and (4) the type of financing is appropriate.
Negotiate Who Pays for Title Agent and Title Policy
Another negotiable aspect of a purchase offer is who pays "title", meaning title insurance and associated searches/fees. Title insurance typically costs around $5.75 per thousand dollars of purchase price for homes up to $100,000 and $5.00 per thousand dollars for homes greater than $100,000, so this cost can seriously vary and become a huge negotiating factor. Whoever pays also determines the closing agent, which some parties also see as beneficial. Contact us if you have questions about this, and know that when the time comes to place an offer, this is one other factor that will determine the bottom line of both parties.
Don't Get Greedy with the Inspection Period
Have the inspection done as soon as possible. When the seller sees that the buyer wants a small inspection period (also known as "due diligence period"), they know that they aren't simply trying to tie up the property and that they are serious about their intentions to purchase the home. When you make an offer that is contingent on having a month to have an inspection, most sellers will assume that the buyer is not serious, and most importantly will not be comfortable taking the home off the market from other potential buyers for that long.