Step 4: Making an Offer

STRATEGIES FOR YOUR OFFER

It can be challenging to determine the fair market value of a home and to assess  whether it is “good value” for its listed price and/or for your budget. Variables  that impact the value of a home or a property include its location, neighborhood,  community plan, proximity to amenities, lot attributes, views, property size, interior  and structural condition, construction type, age, unique features, and the state of the  local real estate market.

Prior to writing our offer, I will provide you with information on recent sales, local  market information and background on whether there are competing offers or any  offers that have been declined.

I will also investigate the Seller’s background and objectives for selling, which may  assist us in strategizing with respect your offer.

We will then use a worksheet that will help us determine your initial offer as well your  target price. This well thought out offer strategy means you’ll only invest at a level at  which you are comfortable.

OFFER DETAILS

The details of an offer typically include: your legal name and that of the vendor, the legal address of the property, the price you are offering to pay, inclusions (items in or around the home that you think are included in the sale should be specifically stated in your offer, such as appliances, lighting fixtures or window coverings), amount of your deposit, dates you take legal and physical possession of the home, legal “subjects” or “contingencies” upon which the contract becomes final (such as satisfactory home inspection report or financing approval), and the date the offer expires.

Your offer is legally binding document and will be prepared for your benefit.

CONTINGENCIES

A contingency clause in the contract gives you the right to back out of the deal without losing your Earnest Money Deposit. There are three common contingencies within most purchase contracts:

• The INSPECTION CONTINGENCY: This is the period you have to inspect the property, review the seller disclosures, HOA rules and covenants and decide is there is anything wrong with the property that would keep you from purchasing it.
• The APPRAISAL CONTINGENCY: This is the time you have for your lender to complete the appraisal. If it comes in below the purchase price we will talk about your options to:

1. Walk away
2. Ask for a price reduction
3. Come up with the differance out of your own pocket.

• The LOAN CONTINGENCY: This is when you get final approval from the lender once they have looked at your financials and have approved the property as collateral for the loan.