If you're on the hunt for Nashville real estate, the standard practice is to have your real estate agent assist you in negotiations with the seller. However, if you want to have more control over the process, you might decide to make an offer yourself. Here are some tips on how to arrive at an offer that is acceptable for the seller.
What Goes Into a Real Estate Purchase Offer?
The first component of an offer is the dollar amount you are offering the sellers. This should be a price that you reach with the guidance of your real estate agent to be sure it's competitive. After that, it's time to consider contingencies, or the things that could change or terminate your agreement. Common contingencies include the inspection and appraisal of the home and whether you'll need to sell your current home before the deal can be completed. Other inclusions can be made to persuade the seller to accept your offer, such as offering a closing date that's convenient for them.
Next, it's time to determine how much cash to put in escrow, often referred to as "earnest money." This set-aside stash lets the seller know you're serious about your offer as you'll lose this deposit if you break the agreement for any reason not covered by contingencies. The typical amount is between one and three percent of the price of the home; larger amounts can sometimes persuade a seller to choose you if there are several offers. Lastly, consider whether to include a letter with your offer. In most cases, this is not a standard component of a real estate offer, but it can be helpful in certain situations. For example, if the sellers are emotionally attached to the home--perhaps they're selling their childhood home after losing their parents--including a letter that appeals to those emotions can help bump your offer to the top of their list.
Tips For Making a Real Estate Purchase Offer
- When it comes to making offers on Nashville homes, research is very important. You can't just come up with any old amount of the top of your head, or else you might insult the owner. A house is more than just a building for its previous owner and an offer that's too low can result in you being escorted to the door in a rude manner. Ask for your agent's help and take the time to look through Nashville real estate listings. Look for compound wall homes, and see what prices they are selling for so that you can make an educated guess.
- Although market price is important for Nashville agents, some home sellers choose to prioritize sentimentality. If a house is important to them, they might consider it special and see it as more valuable than what the current market value states. Ask homeowners why they are selling their house. People who simply don't like their houses anymore will be more open to a cheaper offer. Just remember to find out exactly why they don't want to live there anymore. If it's because the neighborhood is prone to flooding or has a high crime rate, you might not want to live there either.
- During the first few days of an open house, most Nashville home owners stick to their pricing beliefs stubbornly. But having strangers appear at your front door day after day will make even the most stubborn of individuals consider compromise. In this case, it's not the early bird that gets the worm. If you make your offer late in the game, at the point where they simply want the process over with, you might actually pull off a lower offer.
The bargaining process between buyer and seller is always stressful, and Nashville is no exception. In fact, negotiations over real estate prices are more frustrating, because of the amount of money involved. But if you follow these tips, you might be able to come up with an offer that they can't refuse, or at least tempt them considerably.
Contact a Real Estate Agent Today
In every case, it's important to work with a trusted agent as you prepare to make an offer on a home to be sure that your offer is competitive, and that your interests are protected. Reach out to a real estate agent today to get expert help drafting a real estate purchase offer for your future home.
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