Components of a Good Offer

When someone has been searching for the best property to buy and they finally discovered what they feel is the perfect home, it is time to make an offer. When the time comes to make the offer though, the potential buyers need to know what components actually make up a good offer. They need to have one that the sellers and their agents are most likely to accept. Those who are buying a home need to know what they should offer, and those who are selling the home need to know what actually constitutes a good offer.

Let’s look at the different factors that come into play.

The Price

With the price, there is quite a conundrum. The buyers want the lowest possible price, and the sellers want the highest possible price. To make the deal good, the price needs to make both of the parties happy. This can naturally take quite a bit of negotiation.

Earnest Money

This is proof that the buyer has the intention to make good on the purchase of the property, and this can be a huge benefit for the sellers. If the buyer decides to back out of the purchase without good reason – such as the home performing terribly during an inspection – the seller could receive the earnest money to keep. If the deal goes through, the earnest money can go to helping with the closing costs and other expenses. While this might not be essential, it can make a decent deal even more appealing for the seller.

Preapproval Letter

When buying, the buyer should be able to provide a preapproval letter that shows they will be able to get financing for the property. The buyers want this to show that they will be able to go through with the purchase, and it is essential for the seller to see. Otherwise, they could take the house off the market, believing the sale will go through. If the sale doesn’t happen, they would lose valuable marketing time on their property.

Inclusions and Exclusions

Buyers and sellers also need to determine what is and is not included in the house. Will appliances or other furnishings be included with the property? Will the seller install new flooring or cabinets? Both parties need to know and agree as to what they are selling, including upgrades, when making the deal. Again, many of these things are negotiable.

The Time

You should also know when the sales will take place, and the deal should have deadlines for meeting each of the steps of the transaction. There should be a move-in date, and a date that the offer on the table expires. This ensures that the buyer and the seller do not have to wait overly long times for the other party to take action.

Of course, different types of sales may have different elements in them as well. Make sure you are working with a quality real estate agent who will be able to help you make sense of creating or getting the best possible deals whether you are buying or selling.