You’ve been searching for the perfect home, and now you’ve finally found it. The next step is to make an offer. If there are other potential buyers in the running, though, you could be up against some competition. So, how can you make your offer stand out and look the best? The first step is to know what makes up the components of a good purchase offer – and then to ensure that both you and the seller will be happy with the outcome.
The main factors of a good offer will include the following:
- Price – Certainly, the first thing that most sellers will look at on the offer is the price. In most cases, the purchaser is hoping to get the property for the lowest price, while the seller is hoping for the highest. Ideally, you will both land somewhere in the middle. In doing so, however, it can often take some back and forth negotiating.
- Earnest Money – Earnest money shows that you are a serious buyer. Generally, a potential purchaser will submit somewhere in the neighborhood of 1 to 2% of the purchase price of the home. However, handing over more with your offer can show that you are more serious with your offer.
- Pre-approval – Getting pre-approved for a loan is also necessary if you will be needing financing for a mortgage. You should provide a pre-approval letter to the seller in order to prove that you can get the financing that you will need if your offer is accepted by the seller.
- Closing Date / Time Factors – The closing date is also a key component of your offer. In some cases, a potential buyer who submits a lower offer, but a faster closing date, may win out over someone who offers more for the property, but a closing date that is further out in the future. Other time elements can include various inspection dates, and the lock-in for mortgage financing.
- Inclusions / Exclusions – You may also specify in the sales contract items that you want included and / or excluded such as appliances.
All real estate transactions can be different. However, it is typically best to ensure that you have a good real estate agent working on your side who can help you to make sense of all the contract elements whether you are the buyer or the seller. If you plan to move in or out of the Bakersfield area, give us a call. We’ll help get you through the process seamlessly.