As they popularly say “when you know: you know” and when you are sure that you have found the house of your dreams, the next step will be to get it! And this is done through putting the best offer to buy it. For this process it is very important to have a real estate agent to help you, but apart from this you have to know the important aspects of this process and how to win it.

Advice to Make the Best Offer

The Before

The real estate market is extremely competitive. For this reason, prior to submitting the best offer to buy a property, you must have everything pre-approved and ready. In this process, speed may be key. If the seller is urgent to sell and you do not have your money and financing ready, it may be that they leave with another offer that is already more prepared. And we don’t want this to happen to you!

So it is important that if you are going to need financing you already have the loan pre-approved before making an offer. This is also important because this way you can know your budget before entering the negotiation process and not overdo it. Also know that having a little “extra money” is a good tool. This is used to negotiate or haggle the price of your purchase to win.

The information you can obtain before submitting an offer can be very helpful. For example, information that can be useful is the intention of the seller. If the person selling is urgent to sell the property, or is not in a hurry to move from there. Then you can know how to work the offer and the speed at which you must move to get the house.

Another key piece of information before putting together an offer letter that we recommend is to carry out a home inspection by a third party. To avoid conflicts of interest. This is because with the naked eye we may not be able to see many of the internal problems that a house can have. In the process of buying a property, all this must be discussed and considered in the purchase, but it is important that you have an honest assessment of the house in case something was not mentioned or was presented on a smaller scale and this could leave you down a bit off the bargain price with good reason.

Finally, we recommend that you think about contingencies. These are clauses that will protect you in case you have to back down from an offer or negotiation for a property. Sellers often do not like contingencies, so we recommend limiting them but using them wisely.

During the Offer

As a buyer you must know what the market you are facing for the area you want to buy. There are two types: buyers and sellers. A buyer’s market is one where there are many buyers but few properties for sale. Which means a lot of haggling and competition for a property. A seller’s market is where there are many houses for sale but few people to buy them, due to low demand it is less competitive but not necessarily less expensive.

One concept used in the real estate market is “comparison“. These are the properties within the same area with the same characteristics used to compare prices. Usually sellers use them to know what price to put in the “listing”, but you as a buyer can use it to know how much money to offer for the property.

Always remember to look at three key pieces of information to compare: the price it was listed with, the length of time it sold, and the price the property sold for. This is because you and your broker can do a deeper analysis of the price to offer based on this.

An important – often forgotten – aspect of bidding is conveying win – win intentions to the owner. The balance of things is what in most deals, generates successful transactions. Almost everyone, if not all of those who sell their house or property, when they receive offers much lower than the proposed value, cause an emotional barrier that in the end truncates the possibility of obtaining a proper negotiation

Ciany Devoto – Nativu Cartago Advisor

When Does It Make Sense To Offer Less Than Market Price?

Although this is not recommended if you really want to get this property insurance, if you see that it has great factors to offer less than what you ask for, you and your sales agent can consider this option.

These factors can be: -the house needs urgent repairs -the house needs expensive repairs -is in a seller’s market and has many options to choose from -the seller needs to sell quickly.

When Does It Make Sense To Offer The Same As The Market Price?

This option is reserved for a house that you dream of but is at the limit of your budget. Your realtor will help you make a very good offer even though you are offering exactly what they ask for.

If there is not much room for haggling then you must appeal to other factors. For example, in the USA they use a method where buyers write a letter to the seller, in which they tell him why they dream of that house, how they commit to take care of it, and other factors that appeal to the seller’s emotionality.

When does it make sense to offer more than the market price?

It makes sense that you offer more than the seller is asking for because you are so in love with the house. If this property has good schools around, is move-in ready, needs no fixes – other than customization, and overall everything is what you are looking for.

Always keep in mind that this can be dangerous, as if you are in a buyer’s market then it may lead to bidding competition with other potential buyers. And this could put you way out of your budget or overpaying for a property.

The After of an Offer To Buy a House

After you have submitted your best offer you can then receive either: approval, rejection, or negotiation from the seller. If you receive approval, congratulations you have got the house! and now there is only the rest of the purchase process left – If the seller unfortunately rejects your offer, then you can continue looking for other options in itself: “everything happens for a reason” say all the grannies! And if the seller decides to negotiate your offer with you here, you will have to follow a new process with your advisor. If they do it correctly, you will be able to get the house of your dreams.

Buying a home is an exciting process for everyone, but remember to keep your home under control and make informed, thoughtful decisions. Like the one you have to do to make the best offer! Working together with your real estate agent is vital for you to close the deal and buy the home you’ve always dreamed of!