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If
everything looks good, you
may want to proceed in the process. The next step is to write up an offer
to purchase the home you found in Sarasota.
This
is where the information you learned from questioning the seller can be
quite useful. For example, if the seller has been transferred to another
city, they may be very motivated to sell.
There
are many different strategies for negotiating, but the one that I have
seen produce the best results is not all that difficult. It starts by
studying the market data to determine what the fair market value is for
the house.
Your
objective is to make your offer at a price that is slightly lower than what the
seller has in their mind as their “bottom line”, but is close enough
that they say, “Oh, I guess we will go ahead and take it”.
Keep
in mind the three basic options that a seller has when presented with an
offer:
-
Accept
the offer
-
Reject
the offer
-
Make
a counter offer
The
seller will always want to accept the offer if possible, because if they
sign it, they will have a deal that the buyer is bound to. If they
make a counter offer, the buyer is “off the hook”, and is no longer
obligated contractually.
The
price is always the focal point of the offer, but there are lots of
additional areas that you need to address and pay close attention to also.
In your offer, be as specific as possible about every aspect of the
transaction. Details that are not clear or are left out can lead to big
problems down the road.
Some
of the items that you want to be sure to spell out in detail when putting
together your offer include:
-
PRICE
-
DOWN
PAYMENT
-
EARNEST
MONEY DEPOSIT
-
INTEREST
RATE
-
CLOSING/POSSESSION
DATES
-
LOAN
COSTS – WHO PAYS
-
CLOSING
COSTS – WHO PAYS WHAT
-
PRORATIONS
-
APPRAISAL
– WHO PAYS
-
HOME
PROTECTION PLAN
-
INSPECTIONS
– WHAT TYPE AND WHO PAYS
-
ITEMS
INCLUDED (WASHER/DRYER, ETC)
-
TITLE/ESCROW
COMPANY/ATTORNEY
-
CONTINGENCIES
– WHAT AND HOW LONG
Spelling
out every detail can save lots of confusion and misunderstandings, and
keep you out of a costly court battle!
One
area where you need to be especially careful is contingencies. These are
things that must or must not happen in order for the transaction to be
valid.
For
example, the purchase may be contingent upon you getting approved for your
financing, on getting a favorable inspection report, or many other things.
Make sure to spell out the contingency clearly, as well as what specifically
will happen if the contingency is or isn't met.
The
important thing is to keep your goals in mind throughout your
negotiations. This will guide you, and help keep you from making bad
decisions based on emotion.
Keep
one important fact in mind: There is always another house! The
marketing in Sarasota Florida is never stagnant.
If
you start to feel pressured or uncomfortable, step back and review your
goals. Don’t let yourself be bullied around. Remember
that the seller usually needs to sell that house a lot more than you need
to buy it!
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