Once you find the property you want to buy it is important to make an offer quickly. If you check listings daily, you can make an offer the first day or at least in the first week and if the seller is one who is desperate to sell, you can get usually get a really good deal.You can’t just jump in with an offer off the top of your head. Here are a few things you need to consider when making the offer:
- Price— This is how much you’re willing to pay for the house. You should let them know how much you have to put down and whether or not you will give them what is called an “earnest money deposit.” Make sure if the offer is rejected, however, the deposit comes back to you.
- Due Diligence— You’ll want time to inspect the property among other things. Let them know how long you need to have that done and what you need them to provide for you during the time it takes for due diligence.
- Finance Time— Tell the seller how much time you will need to secure financing if financing isn’t already in place. Include any contingencies you have.
- Contract Period— Let them know how long you expect for the contract to be completed if they accept your offer and who will draft it.
- Brokerage Fees— If you’re working with a broker, they get paid a commission. Decide whether you want to pay it or if you want the seller to split the cost.
- Closing Date— Some people can drag the closing of a property on for long periods of time. Let them know how long you want to get to closing completed after you secure finance and have time to finish the due diligence process.
- Closing Costs— Know ahead of time if you will be expected to pay the closing costs, if they are going to pay them, or whether or not the amount for closing costs will be divided between the buyer and the seller.
- Acceptance Period— Sellers will often want to take a long time to accept the offer. They wait to see if they’re going to get a better offer deal or if your deal is the best one they’re going to get. Give them a short time to accept the offer you’ve made, and if they don’t, move on and find a different property in which to invest your money.
If there are any other conditions you want met, let them know in the offer as well. With everything out in the open from the start, both sides will know what is expected of the other and there won’t be any confusion.
Every seller you present with an offer won’t accept your offer. If they don’t, don’t get discouraged. Keep looking for properties until you find one that meets your needs and sooner or later, a seller will accept and you’ll be ready to start your career as a property investor.