Jim Valentine on Real Estate
When you find a home you like the next step is a big one: Making the offer. There are many variables available with which to structure the offer that should be assessed and implemented appropriately to match the customer and the property. That takes a seasoned agent that has properly qualified you and listened to you regarding your wants and needs and will keep those in mind as they pertain to the property you want to offer on.
Don’t worry if you don’t understand the process, you probably don’t understand what your doctor is telling you when you are sitting next to the starched white coat (old school). If you’ve got questions write them down. You probably will have questions about this step in the process long before you find the right home. Ask your agent when you think of them, or write a list to ask when you are together.
Your agent should be able to explain how it works. Don’t worry if you don’t understand it all, just make sure it makes sense and you get the gist of it. We equate this to the mechanic explaining what is wrong with your truck. It sounds logical and you get the idea but don’t know how to fix it but are confident that your car will run right after he does his thing.
You will have competition on most homes you find to buy in this market despite the robust interest rates. Some have cash while others will bank on refinancing in the future, but all want to buy just like you. If you have to sell to buy it is best to be in escrow before you write an offer. If you can close your sale before offering you will be much stronger. Where do you go? Put your stuff in a POD unit and travel, or move in with friends and/or family for a bit. Make it an adventure. The stress of the moment will be rewarded handsomely as you are better positioned to make a stronger offer and buy the home you want, not one you compromised to buy.
The sooner you show strength to the seller the better you will look. This can come from a strong Earnest Money Deposit, shortening times for your conditions, i.e., inspections, escrow, etc., and minimizing exit doors also known as Weasel Clauses. Make your offer clean and good for both sides. If a seller is desperate they may succumb to a predator offer, but if it is a quality property you found to buy likely they are stable and looking for a fair offer good for all parties. You can lengthen times for them to enhance your offer, i.e., give them time after the close of escrow to move. They will have their money before vacating the property. This can do wonders for positioning your offer against any competition.
Don’t put any “hooks” in your offer. Those are things like having the seller pay for the Home Warranty, or go against traditional splits of Title Insurance, Escrow of Transfer Tax. You might slip it by, but in reality a good agent will catch that and you may slide to the back if you have competition. Keep your offer clean. If repairs come up as a result of inspections, keep it fair. Don’t take advantage of the timing of the escrow and their commitment to the sale, do the right thing, whatever that may be in that situation. Every situation is different.
Make your offer strong, simple, and protective of all parties. This isn’t a market to take risks in even if you are competing. The costs of risks these days, like most everything else, is greater than it has historically been so play safe in the process. Remember that both sides have their desired goals. Think of the other side when you make your offer. How will they see it? When something comes up during the course of escrow, how does it affect you … and them? When you keep them in mind as well as yourself you will win.
It's nice to win and get the home you want, not the one you settled on. Make the effort from start to finish, it is worth the work.
When it comes to choosing professionals to assist you with your real estate needs… experience is priceless! Jim Valentine, RE/MAX Gold Carson Valley, 775-781-3704 or dpwtigers@hotmail.com.