Buyer Resources - Articles
Buying Property - Making an Offer
Can You Buy Property Below Market Value?
While a typical Buyer may look at
five to ten homes before making an offer, an Investor
usually goes through many more. It takes a lot of
determination and perseverance to find a real bargain. There are a number of ways to create value in property. Purchase:
Property that needs repairs in a transitional neighborhood
A Foreclosure on the Courthouse steps (Requires Caution and Investigation)
A building that is due to be torn down and move it to a lot you own
The "leftover" house in a new housing development
What Is The Difference Between List and Sales Prices?
The list price is a Seller's advertised price, a figure they would like to realize for the property. Sellers may price property high, low or close to what they hope to receive for the property. To determine whether the list price is at market value The Real Estate Team will us a Comparative Market Analysis (CMA).
What Is The Difference Between List Price, Sales Price and Appraised Value?
The list price is the price that a Seller would like to realize for the sale of the property. Sometimes properties will sell over, at, or below the list price depending on market conditions. Sellers may price high, low or close to what they hope to
get. The Real Estate Team will provide a Comparative Price Analysis (CMA) to assist in evaluating the correct price to offer. The sales price is the amount the Seller receives for the property.
The appraised value is a certified
appraiser's estimate of the worth of a property, and is based on comparable
sales, the condition of the property and numerous other factors at a given time.
Is A Low Offer A Good Idea?
While a low offer in a normal market might be
rejected immediately, in a Buyer's market a motivated Seller will either accept
or make a counteroffer. Full-price offers are more likely to be
accepted by the Seller. However, there are other considerations involved:
Contingencies - i.e. sale of Buyer's property, loan, condition of property
Are repairs being requested
An all cash offer with a short escrow period of time
What Contingencies Should Be Put In An Offer?
Any thing that will affect a Buyer's willingness to purchase a property should be stated as a contingency by the Buyer. The three most common contingencies are for the financing and appraisal, and inspections. The purchase contract must include the Seller's responsibilities,
such things as passing clear title, maintaining the property in its present
condition until closing and making any agreed-upon repairs to the
Who Gets The Furnishings When A Home Is Sold?
Anything permanently attached to the property when the offer is written goes with the property. Furnishings are the owners personal property unless negotiated otherwise. Lenders do not look favorably upon personal property being part of the purchase price.
Whose Obligation Is It To Disclose Pertinent Information About A Property?
The Seller is required to disclose all facts materially affecting the property that are known or accessible. This includes but is not limited to:
Homeowners' Association Dues
Any restrictions on the use of the property - zoning and association CC&R's
Permits for work done on the property
Presence of any neighborhood nuisances
Noises which a prospective Buyer might not notice - ie. dog barking at night, close proximity of railroad tracks, poor TV and cell phone reception, death that occurred in a house within the past three years.
disclosure rules prior to a home purchase.
How Do You Determine The Value Of A Troubled Property?
Buyers considering a foreclosure property
should obtain as much information as possible.
It is also important to examine the property. If you are
unable to get into a foreclosure property,The Real Estate Team will check with surrounding neighbors
about the property's condition, the lender regarding the range of bids expected, and the Title Company for liens. They will prepare a Comparative Market Analysis (CMA) to assist with determining the price to bid on the Courthouse steps.
What Are Some Tips On Negotiation?
you know about a Seller's motivation, the better you will be able to negotiate. For example, Seller who must move quickly due to a job transfer may be
amenable to a lower price with a speedy escrow. Other so-called "motivated
sellers" include people going through a divorce or who have already purchased
Remember, that the listing price is what the seller would like
to receive but is not necessarily what they will accept. The Real Estate Team's members are Certified Negotiators.
Do I Need An Attorney When I Purchase Property?
In California you do not need an attorney.