Last month I talked about the 10 steps to buying the right property and finding the right rental property. So now that you know how to find the right property, we need to talk about how to put in the best offer on the property in order to get the best deal.
Once you have chosen the property you need to first determine the purchase price that will make a great deal for you as the buyer. You can determine this by looking at comparable sales prices. Your Realtor should be able to put together this information from the MLS and public records. We are finding in this market most sellers are negotiating from their asking prices by an average of 8-12%.
Review sales history…how long has the property been on market and what did the seller pay for the property? Although in this market these details won’t always determine selling price, it will sometimes help you to determine the level of motivation of the seller. Your Realtor should also be able to tell you if this is a short sale, foreclosure sale, or regular sale. The type of sale will determine your plan of attack for pricing and negotiating to get the best price. (The difference on these sale types is a whole separate article…watch for that next month.)
Find out if any other offers have been put on property yet…if so, you will be able to get a feel for what the seller will or will not accept, and also be a little more telling as to the seller’s level of motivation. I keep referring to the seller’s level of motivation…all sales will come down to this, and this is something that can change on a daily basis depending on personal situations.
Once you have reviewed all of this information, you should have a final purchase price you are comfortable with that will give you a good deal on the property. So, now comes the time to put together the details of the offer with your Realtor. Different documents will be needed for the different sale types (again, more to come on that next month), but the basic terms will remain the same.
In most circumstances when we talk about getting a good deal, it means getting a great price on a great property. In order for a seller to come down to the lowest price possible, you have to make the offer as strong as possible in other terms…no finance contingency, quick closing, as is condition, good earnest money deposit amount to show commitment to transaction, and both parties paying their own closing costs or better. When all of these terms are reviewed together, a realistic seller should be happy to sell to you as the buyer.
Dana McIntosh, REALTOR
dana@eimersgroup.com
800-775-5914 Main | 850-428-0243 Cell
