You saved up enough for a decent downpayment and made sure your credit score hit its peak. You've searched for weeks to find the perfect property. Now you're ready to put in an offer. Currently, we're experiencing a seller's market in Lake Havasu City. High demand from buyers means serious competition. You need to know how to make an offer that appeals to a seller but still nets you the best deal. Below, you'll find a helpful guide to assist you in crafting a great offer.
How to Make an Offer on Your Dream Havasu Home
Talk to Your Agent
First, you hired your real estate agent because you trusted them to do a good job for you. They deal with real estate every single day. Utilize their skills to help make an offer. They can find out how motivated the seller is, how many offers might be on the table, and what the current market trends in the area are. This will help you set an effective opening bid.
Know Your Limits
After your agent determines a fair market value for that Havasu home, decide the maximum you expect to pay for it. Now, that doesn't mean you necessarily start off with that number when you make an offer. However, it helps to know where your limits lie when a seller counters your offer. Of course, if you find other buyers also bidding on the same house, you might want to make a higher offer than you originally thought. Again, that's where your real estate agent's knowledge comes in handy.
Never Underestimate the Power of Your Earnest Money Deposit
In a seller's market, you need to show the seller that you mean business. Besides providing a healthy downpayment, be prepared to plunk down a good chunk of change for your Earnest Money Deposit. Once you and the seller agree on a price and sign a purchase agreement, that Earnest Money Deposit shifts to your downpayment. So, you're not actually out of pocket any extra money. Instead, this strengthens your offer by showing the seller how much you're interested in making the sale happen.
Read the Fine Print
Before you make an offer, check out what the sale of the property includes. Do the appliances convey? Will they be leaving the pool equipment behind? Are there fixtures they plan on taking with them? Also, include a settlement date (how long you want the escrow to be, such as 30, 60 or 90 days). Pore over every line of the listing so you can make an effective and informed offer.
Just about every real estate transaction includes contingencies. If you have a current home you need to sell before you can buy this one, include a home sale contingency. Most lenders require that an appraisal is performed before they will approve a loan. Put an appraisal contingency in your sales contract. Other common contingencies include a home inspection, financing, and a clear title. Keep your contingencies to a minimum. And remember that if you back out due to any reason other than the contingencies you list in your contract, you forfeit your Earnest Money Deposit. So make sure you are covered in your contract.
Make it Personal
Finally, include a personal letter when you make an offer. Talk about the things you love most about the house. Did they recently upgrade the kitchen? Tell them how much you love to cook. Did the backyard undergo a major overhaul? Talk about how much you love to entertain and look forward to hosting your first barbecue there. Have your real estate agent find out any background information on the seller that will help you relate to them on a personal level.
After you make an offer on your dream Havasu home, you might receive a counteroffer. If that happens, talk with your agent about whether or not to accept it or if you should counter back. Before you know it, you'll be heading into the final countdown to closing on that home. Good luck. Contact me if you need any help.