You found the perfect house and you want to make an offer – but how much? That is a great question!
Price is just one factor in making an offer and we will get to that. First, a few other details must be given serious consideration – details such as the closing date, date of possession, amount of earnest money deposit, down payment amount, loan type, personal property inclusions, desired inspections plus the length of the inspection period, and any other stipulations or contingencies. All of these details combine to make an offer package. Price is just one aspect of that package and is often the easiest part of an offer to adjust. Therefore, price should be the final thing to consider when making an offer. A professional Broker will help and guide you in determining the various parts of an offer. One of the facets of their job is helping you craft a strong offer based upon your individual situation and goals.
Let’s imagine a house that comes on the market. The asking prices is $400,000 and the sellers have already vacated. Two potential offers that could be made on this home are:
1) A financed offer with 5% down, closing in 6 weeks, 12 business day inspection period
2) A cash offer, closing in 3 weeks, 7 business day inspection period
If the dollar amount of the offer is the same for both, which is more attractive? The cash (second) offer! Since the Seller is already moved out, the short inspection period and quick closing likely will more appealing to the Seller. Additionally, with no financing, there are fewer potential hiccups. So, if you are making an offer similar to the second one, you may adjust your offer price accordingly to accommodate the rest of your more favorable terms. Conversely, if you are making an offer similar to the first, you may want to adjust your offer price to accommodate the less desirable terms.
In the above example, the Seller already vacated the home. But what if they had not? What if the Buyer needs to move in very soon? The entire offer situation becomes more complicated when you factor in Seller preferences and needs on top of the Buyer’s preferences and needs. Additionally, the listed price may be high or low compared to the current market and the decision of what the offer price should be becomes further complicated. A Broker will help with determining both a price, based on a comparable sales analysis, and other terms of the offer to make your offer stand out in the crowd.
Call Town & Country Realty at 541-757-1781 in Corvallis and 541-924-5616 in Albany today. One of our professional and experienced Brokers will help you ensure your offer is the best overall package possible on your new home. You will be so glad you did!