Proposing an initial offer on a house is a significant turning point in one’s home shopping journey. It is typically is the first real introduction of a potential buyer to the seller. As many considerations go into a formal offer, much strategic and detailed planning is required. This is one of many reasons to enlist the help of a professional realtor to ensure the legalities and formalities of an offer is sound and create a solid base from which to make further decisions and negotiations.
Determining a Competitive Price
Many factors go into a thorough analysis of a fair price. As such, consulting with a realtor is a must. Generally, it is recommended that an interested buyer start out with an ambitious price, but not so low that it is insulting. In order to calculate an appropriate sum, a realtor can help their client determine the market value by carrying out a competitive analysis. This essentially gives a good idea of how much other similar homes in the area are worth and selling for. As negotiation is often imminent after the initial proposal, having a viable counteroffer readily in mind is also important, in order to stay on one’s toes and react quickly for a good shot at closing.
Contingency stipulations based on hypothetical, unforeseen issues are important but should not be overused. While they are integral to many offer proposals, benefitting buyers with protections should they back out for certain reasons; many sellers find multiple contingencies a damper on the process they want moving quickly. Picking and choosing any relevant stipulations strategically and conservatively is the way to go. Feeling out the sellers and the local market is also important in knowing what is appropriate to include, like a clause stipulating a buyer’s first home must sell first and is largely tied to how long a home has been on the market. This is a good indicator of how eager sellers are to negotiate and settle on an offer, creating a more advantageous wiggle room for buyers.
Personal Connection with Seller
Sometimes underestimated, establishing a good relationship with sellers can go a long way in persuasively leaning a home sale in the buyer’s favour. This can be as simple as writing a personal, cleverly written letter within the offer complementing the property and showing what existing features one appreciates and values for their prospective living space. Rather than dealing with numbers and data, this aspect of home buying is based on psychology and positively swaying emotions. While practical factors like offering a competitive price are essential, those ready to propose an offer should consider interpersonal rapport’s role in making one’s name stand out to sellers.
Reach out to the expert advisors at Alpharetta Zen for guidance and support in your home buying process, including the involved matters of creating an initial offer.