· Pre-approved for a loan
Your first step is to meet with a local lender and get pre-approved for a mortgage. This will assure a seller that you are financially ready to close the transaction.
· What are the comparables in the area
An agent advises a seller of the price to list the house for using comparable house sales in the area and pricing strategies. Ultimately it is the home owner’s decision what they list for. What you should consider is the house priced fairly according to comparables in area during last 3 months? Does it seem over priced compared to other active listings? Some sellers already mark the house down to draw multiple offers. Some homes are priced too high and may sit on the market for years.
· What are the seller’s interest regarding the sale
Understanding the buyer’s interest in selling can make a huge difference in how the offer is accepted or a pause in negotiations. With multiple offers each with different terms the one that offers the easiest offer to the seller is often preferred. Sometimes you as the buyer can offer the seller a term he may not have expected rent back to them for 2-3 months free to take your offer. This may allow them to shop for a home and make one move. Sometimes a seller might want to close as soon as possible. Having one person who will do this and another with a contingence to sell there other home first guess who they pick. Allow time for inspections and time for the Lender to fund the loan.
· A good earnest money deposit
You will make an earnest money deposit payable to the escrow company. The check is delivered to the escrow company within three business days of acceptance of the offer. This amount is usually 3% of the purchase price. A strong earnest deposit shows you intend to follow this thru to closing.
· Allowing time for the seller’s response
Time is important especially if it is a new listing with other offers that may come into play. You want to avoid the multiple offers because the price may jump significantly. A standard contract will give you till 5PM on the third day from receipt of the offer to respond unless a special date and time has been requested. If you are offering a good offer you want to make the time sooner to be sure another offer does not get into the mix and stall things. Most sellers will wait the 3 days to see if another offer comes in especially when it’s a low offer. Best advice is to be patient and wait for the call.
Most realtors enjoy writing offers and negotiating on the clients behalf.