Now that you have selected the home of your dreams and it is now time to write your offer. It is becoming more problematic to verify the market value of condos due to varying housing prices, especially in dc neighborhoods such as American University Park, Columbia Heights, Logan Circle, etc.
How to consider the most effective offer price?
When determining the most suitable offer price, you will find several topics to contemplate as follows:
1. Most recent comparable sales within last 3 months
2. Comparison of Square footage
3. Your estimated mortgage payment
4. Number of days on the market
5. Previous sold price
6. Seller Subsidy
I am a firm believer that it is essential to have a in-depth overview of the owner's circumstance to develop a broad offer pricing approach. This will reduce appraisal concerns later in the transaction. The buyer's offer price should be more involved than just submitting a "lowball" offer because we are in a buyer's market.
Is each real estate transaction unique?
No situation is similar because there is a wide array of factors to consider. The most vital variable is the seller's willingness to negotiate. The owner's desire to negotiate is directly related to the number of days the property has been available for purchase. TIME plays a sobering role in encouraging sellers acknowledge the reality of a buyer's market. Every transaction is going to be different from anyone elses (ie. friends, family, etc.) because each buyer's financial situation is different.
Are contract contingencies necessary in an offer?
Contingencies give homebuyers options and versatility to manage sudden problems during a deal. Appraisal values and loan requirements are constantly changing. It becomes important to include these contract contingencies with all offers. The most common typical contingencies highlight on home inspection, appraisal, and financing.
Why should buyers be adaptable?
Buyers should always expect the seller to counteroffer all offers. There is always room for negotiation. Use the most recent comparables only as a place to begin, not just as a pricing ceiling. Here are some criteria for negotiation as follows:
1. Amount of EMD (Earnest Money Deposit)
2. Number of days before Settlement
3. Closing Cost Help
4. Contract Contingencies
5. Property taxes (ie. recordation and transfer)
Contract negotiations are like playing POKER. You want the other party to know that you are a serious player w/o showing your cards. To make purchasing a property a more hassle-free process, the most crucial thing a homebuyer can do is to be informed about all of their homebuying options.
How to consider the most effective offer price?
When determining the most suitable offer price, you will find several topics to contemplate as follows:
1. Most recent comparable sales within last 3 months
2. Comparison of Square footage
3. Your estimated mortgage payment
4. Number of days on the market
5. Previous sold price
6. Seller Subsidy
I am a firm believer that it is essential to have a in-depth overview of the owner's circumstance to develop a broad offer pricing approach. This will reduce appraisal concerns later in the transaction. The buyer's offer price should be more involved than just submitting a "lowball" offer because we are in a buyer's market.
Is each real estate transaction unique?
No situation is similar because there is a wide array of factors to consider. The most vital variable is the seller's willingness to negotiate. The owner's desire to negotiate is directly related to the number of days the property has been available for purchase. TIME plays a sobering role in encouraging sellers acknowledge the reality of a buyer's market. Every transaction is going to be different from anyone elses (ie. friends, family, etc.) because each buyer's financial situation is different.
Are contract contingencies necessary in an offer?
Contingencies give homebuyers options and versatility to manage sudden problems during a deal. Appraisal values and loan requirements are constantly changing. It becomes important to include these contract contingencies with all offers. The most common typical contingencies highlight on home inspection, appraisal, and financing.
Why should buyers be adaptable?
Buyers should always expect the seller to counteroffer all offers. There is always room for negotiation. Use the most recent comparables only as a place to begin, not just as a pricing ceiling. Here are some criteria for negotiation as follows:
1. Amount of EMD (Earnest Money Deposit)
2. Number of days before Settlement
3. Closing Cost Help
4. Contract Contingencies
5. Property taxes (ie. recordation and transfer)
Contract negotiations are like playing POKER. You want the other party to know that you are a serious player w/o showing your cards. To make purchasing a property a more hassle-free process, the most crucial thing a homebuyer can do is to be informed about all of their homebuying options.
About the Author:
Read more articles by Jason Trotman about first-time homebuyer and washington dc real estateinformation.
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