Friday, June 16, 2023 / by Blair Hayes
There are a lot of misconceptions about how real estate agents help you when it comes time to make an offer on a property. There are so many things that go into the offer - sales price, if the seller should include a home warranty and should the seller offer concessions or closing cost assistance to you, the buyer.
There are many different factors and numbers you have to consider to ensure that a property is the right one for you and if the price is right. Depending on market conditions and competitiveness of offers on the property, your Realtor can help you determine what to include - or not include - in your offer to help it stand out to the seller. While competitiveness is key, your Realtor also wants to score you the best deal possible, so it is important to be open and honest with them about your needs as a buyer.
Your Realtor can conduct a CMA (comparative market analysis) on the property or area of interest to help ensure you do not offer over what the house would likely appraise for, which could cause a bump in the road when the appraisal happens. The CMA also helps you gauge what a competitive offer would likely entail based on market conditions. Coming in below fair market price or even on the low end could make your offer less likely to get accepted or make you appear as though you are not a serious buyer. Each of these could prevent you from getting the home of your dreams and lengthen the home buying process for you.
Your Realtor will give you all pertinent information as noted above and may even include examples of previous experiences to help you predict potential outcomes of certain elements of your offer (e.g. “Based on past experience, when a buyer makes an offer that is far below asking price, it could come off as offensive to the seller making them toss out the offer altogether.”).
Keep in mind that you, the buyer, are the ultimate decision-maker. While you are empowered by the freedom of choice when it comes to proposing the details of the offer, don’t shy away from leaning on the advice of your Realtor and lender. Don’t be afraid to have open and honest communication with your Realtor and lender about your financial needs, such as whether closing costs or monthly payment is a bigger area of concern for you. Don’t assume that you know everything about buying a home, whether it’s your first or not, as the market is ever-changing. Rely on the proficiency of experts in the field dedicated to helping you.
Written by Blair Hayes, REALTOR®