"Always plan ahead. It wasn't raining when Noah built the ark." - Richard C. Cushing. As you're actively searching for that perfect home, it's important to be ready once you find it. Lets have our plan, our Offer Checklist in place before we inevitably need it. When it comes time to write an offer, this is what I will need to know:
- Copy of your Pre-Approval Letter or (if cash) Proof of funds.
- Spelling of all buyers formal or legal names.
- What type of financing (if any) will you be using? eg: Cash, Conventional, FHA, VA, Home Equity Line of Credit. Your mortgage professional should be able to provide you with this information.
- How much money are you putting down towards the purchase? It can be an actual dollar amount or a percentage of the purchase.
- Buyers Closing Costs? Often it can be possible to ask the seller to cover all or part of your closing costs. This additional amount usually runs between 2-4% of the loan amount. Keep in mind whenever we do ask the seller to cover these costs, it's basically coming directly from the sellers bottom line profit. In essence, lowering the price of the property. My suggestion when we negotiate your offer, we should either ask for a reduction in the price or ask for closing costs. Try not to attempt both because this will most often mean an offer so far below the current market value, the seller will feel forced to ignore it. Then we're approaching any future negotiations from a point of weakness.
- Closing Date. When do you want to own or move into the property? An average closing time period is between 30-60 days from an agreed contract.
- Repairs or As-Is? Will you be expecting the seller to make any repairs that come up on your inspections or are you interested in purchasing the property in its As-Is condition. Generally an As-Is contract is more appealing to the seller, which can mean a more favorable price and terms during negotiations. This however doesn't mean you might be stuck with a bad property. You will still have the right to inspect and cancel the contract and even possibly renegotiate the terms of the offer contract. Of course if you prefer to have repairs done prior to move in, then the repairs contract should be your option. It also wouldn't be unusual for your decision on this one to change from property to property depending on your perceived condition of the home. Keep this one in the back of your mind and be sure to have an answer when it comes time to prepare an offer. - Also bear in mind that most Short Sales or Bank Owned properties will automatically be an As-Is purchase.
- Additional contingencies? Is there anything else that must happen in order for you to close on the property? For example, do you need to sell your current home? Do you need monies released from a 401k; do you want your attorney to preview the offer contract; does the property need to be approved for any zoning changes? Be sure I'm aware of any additional protections you need in your offer.
- Last but certainly not least, Purchase Price. Of course you won't know exactly what to offer until you find the right house. Also I can help you by preparing a Comparable Market Analysis on the property so you can see the recent sales that have taken place for other homes like this one. This way you know what would be a fair price, a bad price, and an excellent deal!
Now hang onto this because you are going to need it later. In fact go ahead and print this out and hang it on your refrigerator! To you I offer my best! Dan Lopez | Legends Realty | 290 Waymont Ct., ste 100 Lake Mary, FL 32746 | firstname.lastname@example.org | Mobile: 407-705-3915 | www.HomesInCentralFL.com