Tips for Real Estate Buyers

July 23, 2010 - PRLog -- The Professionals at McCaffrey Realty specialize in counseling as you consider the many aspects of your purchase.  We want to help you through every step on your way to owning a new home.

The information below can help answer some of your questions about the process, basic homeowner issues to look out for, and lists of local resources.

So what exactly needs to take place from the moment you start looking for a home to the moment when you move in? At McCaffrey Realty Professionals we understand that the process can be a bit intimidating, especially to first time buyers.

The following information is about Making An Offer.

Q: When I find a house I want to buy what do I do?

Your Counselor will help you draft an offer that will detail all of your negotiating points to the Seller.  All offers MUST be presented but we want to have the Seller look at you as a strong Buyer. We will put the offer in writing and ask you for a good faith check for 1% of the offering amount. This 1% will eventually become part of your down payment and be credited towards the purchase amount. If the offer is not accepted it will be returned to you.

Q: How much should I offer?

Your Counselor will guide you through this and it will depend on many factors.

   * Is the asking price close to the value of other homes like it that have sold recently?
   * Are there other offers on the home?
   * Is it the only home that meets your needs or will there be others?
   * How long has the house been on the market?
   * Does the house have special features that you will not be able to find in other homes?
   * Are you under time restraints to find a home?

The value of a home is different for different people. Your counselor can determine if there is any negotiating room at all. In some instances your Counselor may even suggest a higher than asking offer. In MOST cases we advise to offer at least 95% of the asking price.

Q: Why would I offer more than the asking price?

   * If you have determined that the home is well priced or priced below market it is a tactic to take the house off the market before you get into a multiple offer situation where several buyers are bidding for the same house.
   * If you find yourself in a multiple offer situation you MAY be asked to submit your highest and best price which is usually above the asking price.
   * If you are asking the Seller to pay some or all of your closing costs
   * You are asking the Seller to accept an offer contingent on the sale of another property

Q: How much should I tell my Counselor?

Your Counselor is working for you NOT the seller.  Your Counselor will work in your best interest at all times. We can not promise that we can get you the house you want below market value but we will advise how to position yourself so that price is only one factor and may be outweighed by other strengths.

Q: What other things will the Seller consider?

Price is only one item.  Just as important are closing date, financing terms and items included in the sale.  Also critical is whether you have a house to sell. Contingencies such as inspections will also play a part in the negotiating.  Any other contingencies, such as work to be done to the house, seller concessions, rent with option will weaken your negotiating position.

Q: What are normal contingencies in an offer?

   * Mortgage contingency- Usually 30-45 days to get your mortgage or all funds will be returned.
   * Building inspections- Usually 5-10 days to have inspections at your expense and be satisfied with the results or negotiated compromise.

Q: Offer to Purchase vs. Agent Contract?

You will be given the option of drawing up your offer on an Offer to Purchase form or a Contract of Purchase form.  The Contract is more binding on both parties and presents you as a more serious buyer.  This contract has an attorney review period but stands as a contract until superseded by an attorney drawn contract.  It prevents the Seller from accepting a higher offer that comes in after you have already agreed on price and terms. An Offer to Purchase is an agreement but it is non binding on either party. There are times when you would choose one over the other which your Counselor will explain in detail.  In this fast moving, competitive market we generally recommend the contract form.

# # #

http://www.Mccaffrey-Realty.com McCaffrey Realty Professionals was founded in 2003 by Owner/Broker Linda McCaffrey and partner Ryan McCaffrey along with a core group of full time veteran Realtors.