Purchase Offers

 

 

Understanding Offers

An offer to purchase a home is usually made in the form of a written contract prepared by a sales associate representing a buyer. In some cases when a buyer does not have an agent to represent them the buyer may work directly with the listing agent to submit the offer to the seller, this is known as a Dual Agency. The benefits of a Dual Agency, or the listing agent representing both the buyer and seller in a transaction, is that both parties involved have the potential to save time and money by dealing with one agent as opposed to two.

Offers are usually confidential in nature as in no other individual or group other than the listing agent and the seller know the details of the offer that a buyer or buyers’ agent have made.

Offers are also usually time sensitive and often carry strict deadlines which must be met. If an offer is not properly addressed it could cause delays in the process, encourage buyers to rescind their offer, and has the potential to derail the listing altogether.

In most cases it is not necessary but sellers may also wish to consult with their attorney or tax advisor about offer because certain transactions could have adverse tax or legal ramifications.

If the details of the offer meet the sellers needs the offer is then accepted, escrow is then opened immediately after and the process of finalizing the sale begins.

 

Evaluating An Offer

Sellers have many details to consider before accepting an offer

Here are some of the ways I help sellers navigate the evaluation process before accepting an offer to safeguard their chances that the offer will translate to a sale:

  • Providing sellers with specific information about local, state and federal requirements that affect the sale of property. These requirements may include: Transfer Disclosure Statement, Smoke Detectors Compliance, Environmental Hazards Disclosure; and Federal requirements such as: The Foreign Investment in Real Property Tax Act (FIRPTA) and Lead Paint Hazard Reduction Act.
    • Some offers with conventional financing might fall out of escrow if the requirements above are not met
  • Providing information about recent market activity and projections
    • As the market changes so will the offers, it is important to stay ahead of these changes in order to anticipate a desirable outcome
  • Requesting more information about the buyer’s background, intentions and qualifications
    • In some cases offers are sent over with very little supporting financial information such as proof of funds. Requesting financing information assures your chances of success.
  • Ensuring that both sides of the transaction are knowledgeable and on the same page about availability of alternative financing if conventional financing might be an issue.
    • At times escrows fall through due to shortcomings in conventional financing (Traditional Mortgage Loans) not panning out but there are other options known as unconventional financing that most borrowers and sellers are unaware of.
  • Thoroughly review the contract and ensure that the seller understand all the details in the offer such as contingencies, inspections, disclosures, why a certain escrow agency is involved, buyer financing, and any unusual terms and costs associated with the offer
    • Surprises are one of the main reasons properties fall out of escrow
  • Informing sellers of potential counter offers they might be able to make to fulfill or exceed their needs
    • Lots of inexperienced agents leave money on the table that could have gone into their clients pockets

 

I always present all the facts at my disposal to my clients and I will always offer my educated professional opinion if possible, but the final decision to accept, reject or counter an offer is always the sellers.

Thank you for taking the time to visit my page. Feel free in reaching out with any questions. My contact information is located on the contact page found in the contact tab at the top. I look forward to helping you in any way that I can.

 

 

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