Buyer Tips On Making A Real Estate Offer
By Caesar Parisi
Because of today’s complex real estate issues and laws, it is recommended that you work with an experienced Realtor that is familiar with the local area, and who will assist you with making your offer and negotiating with the seller. Your Realtor needs to provide you with comparable sales and listings in the area for the past recent months in order to help you determine the right price. Any additional information your Realtor is able to obtain from the seller or his agent regarding the sales price will also give you an idea how realistic the Seller is about accepting your offer.
Seller’s Statutory and Material Disclosures
Keep in mind that the seller must disclose in writing certain material conditions that affect or may have affected the property in the past such as roof leaks, structural damage, mold, hurricane wind damage, fire damage, lead paint or noise pollution. You should take into consideration this information in determining the amount and terms of your offer. If you are purchasing foreclosure property from a bank, or property from an executor or a trust, mandatory disclosures may not be required. The laws vary from state to state.
Contract Contingencies
Your offer should contain an inspection contingency of at least 7 to 14 days from acceptance of the offer so that you have enough time to have the property inspected and review the inspection reports. However, if there are multiple offers on a property and the seller allows you to have an inspection prior to making your offer, then you may want to reduce the time of the inspection contingency or remove it entirely so you have an advantage over other buyers bidding on the property. Your Realtor will advise you of the best strategy to follow.
If you are obtaining financing, then the offer should also include an appraisal and loan contingency period of approximately 14 to 30 days from acceptance of the offer. However, it is highly recommended that you speak with a lender prior to making your offer, and have them pre-qualify you for the loan so that you can present a pre-qualification letter to the seller upon making your offer. Your Realtor can arrange for you to meet with a lender if you do not have one. Offers made by pre-qualified and pre-approved buyers have a higher chance of being accepted because the seller knows you are qualified to close the deal. It also gives you a stronger bargaining position, especially if there are multiple buyers making an offer on the property at the same time. Again, if you are pre-approved and you know you want the property, then you may want to shorten the contingency or remove it entirely to give your offer an edge over other buyers’ offers. Typically contracts contain provisions for pest control inspections and mold inspections so make sure your Realtor explains these items to you ahead of time.
Choosing Title and Escrow Companies – Closing Costs
In some counties it is customary for the seller to choose the title and escrow company and sometimes the buyer in others. However, everything is negotiable. Your Realtor may suggest a title or escrow company they are comfortable working with also. The tile company and your Realtor will discuss closing costs ahead of time with you. Most closing transactions are conducted by an attorney who is a closing agent for the title company.
Final Walk Through
Prior to closing, you and your Realtor should do a final walk through of the property to make sure that it is in the same condition that it was when you made the offer and also to inspect any repairs that may have been made by the terms of the contract.
Closing
You should attend the closing and also request that your Realtor attend to make sure that there are no last minutes issues that may arise. You may also have your attorney attend. If you not planning on personally being at the closing, you should make arrangements ahead of time to have the closing documents mailed to you for signature and returned in time for the closing.
About the Author: If you are interested in purchasing Boca Raton real estate, contact us at your convenience. Visit our Boca Raton News Blog for more information about the South Florida real estate market.
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