What Makes For A Winning Offer?

I was out showing property last week. Like most prospective buyers these days, my clients were searching for a "deal". This was not our first tour of homes. These folks are from out of town and have visited property in 2 or 3 day stints during each visit to Atlanta. They've visited several times this year in their search to find investment property that they might retire to some day. We found a place last week that seemed to be everything they were looking for -- ranch style home, good neighborhood, updated kitchen, new paint and HVAC, fenced yard, "move-in" ready condition, 2-car garage, etc. When we arrived at the property another agent was in the process of showing the home. We waited patiently for them to leave before we entered the property. As we were leaving the property, another agent was arriving with another tour group. The home had only been on the market for 3 days. Obviously, it was a highly sought after ranch style home which generated a lot of interest. I warned that the house wouldn't be on the market long. Competitively priced, we made an offer on the property only to find that the home had already received multiple offers. It was not a short sale or a foreclosure -- but it was priced like one. It was a reasonably priced hard-to-find ranch style property. Ultimately our offer was not accpeted. Of course, my clients were disappointed, but learned the hard way, that low-ball offers don't work in a competitive market. This year, the Atlanta metro area has experienced a market shift from a healthy buyers market back to a sellers market -- albeit with a price correction. These days you can expect that most properties that are competitively priced will receive multiple offers giving the seller the upper hand to accept the "highest and best" offer. It's important that buyers and sellers understand current market conditions. If you're a Buyer, Better Homes and Gardens Real Estate Metro Brokers suggests that you do your homework prior to shopping for your next home. For that reason, I share the following article from Better Homes and Gardens Real Estate. Enjoy and feel free to call me with your questions at 404-660-2481. Get pre-approved Before writing an offer – and ideally before you even begin your search – meet with your bank or other financial advisor; the one who will be giving you your mortgage, and get pre-qualified or pre-approved. When it’s time to put forth an offer, the seller will know it’s serious. Understand the local context List prices are often subjective. Look to your Better Homes and Gardens Real Estate Metro Brokers sales associate to advise you on pricing strategy. In the end, it’s important that you know the real estate situation yourself to determine if the property is fairly priced, based on comparable, recently sold properties. There’s no rule of thumb that says going in under asking is expected. Market conditions will dictate the selling price. Keep in mind that homes will also occasionally be under-priced to attract multiple offers. This circumstance may call for a bid over the initial asking price. Understand and adjust to the seller's interests Asking the right questions prior to writing an offer can often make the difference between an accepted offer and a stalled negotiation. Some contract terms may be of great significance to the seller, whereas only a slight inconvenience for you. Should the seller want to rent the place back, for example, for a few days or weeks after escrow, your written flexibility on the move out/in date could close the deal in your favor. Make a strong deposit part of your offer You'll want to submit an earnest money deposit when writing an offer, payable to a reputable escrow company, to be delivered by your agent no more than three business days after the acceptance of the offer. Even when delivering an offer below asking price, offer a large deposit if possible, and it will pay dividends in the end. Down payment strategies however may vary. In some areas, a smaller deposit is the norm. Regardless of location, a higher deposit will most likely strengthen your negotiating power. Provide an appropriate time for the seller's response Time is of the essence once you decide to take the plunge, especially regarding a newer listing in which the risk is high that other buyers will potentially submit offers. Typically, the seller is given until 5pm on the third day from receipt of the offer to respond, unless you write in a different date and time. If the offer is strong, speed up the response time. Your Better Homes and Gardens Real Estate Metro Brokers sales associate can advise you on what strategy will work best. About Sara Hibbard: Sara Hibbard is a licensed Realtor in the state of Georgia and works at Better Homes and Gardens Real Estate Metro Brokers. Sara enjoys working with both buyers and sellers. Please feel free to contact Sara anytime with your many questions regarding the local real estate market or specific questions regarding the relocation / buying / selling process. Sara is easily reached at 404-660-2481 or via e-mail at sara.hibbard@metrobrokers.com. Visit Sara at www.Facebook.com/GeorgiaRealEstateOnMyMind, www.SaraHibbard.com, www.Georgia-ShortSaleInfo.com. Sara Hibbard is Glad Georgia Real Estate Is On Your Mind!