Palm Beach County in Florida is a great place to make a home not because of the amenities and weather but also for the fantastic real estate available. But in a competitive market, you’ll need to make a compelling offer. Putting down the largest bid certainly helps, but there’s more to making an offer than just offering the market price. Here, we’ll give you tips on how to craft a bid that maximizes your chance of landing your desired property.
FIND A GOOD LOCAL REAL ESTATE AGENT TO HELP YOU
While you can proceed with the home-buying process without a real estate agent’s services, you may be exposing yourself to making costly mistakes. Many buyers, even if they are experienced, find that on the whole, good real estate agents pay for themselves, especially when it comes to helping you come up with an attractive bid and the negotiations that could proceed.
PREPARE FOR THAT OFFER
If you have already made a shortlist of potential homes to make an offer on. You can begin working on your offer:
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Consider the ideal pricing
- COMPS. Have you conducted a comparative analysis of sold homes in the vicinity of the one you plan to buy? Check the similarities and the prices at which they were bought. Again, the best person to help you do this is a real estate agent.
- COMPETITION. Sellers in hot housing markets like Palm Beach County are likely to receive multiple offers, especially during peak times of the year.
- NEED FOR REPAIRS. Check the extent of repairs that have to be done and make sure that you factor this into your budget and offer.
- MARKET CLIMATE. With Palm Beach County’s housing market balanced and tending towards being a seller’s market, be aware that lowball offers are likely to be dismissed without the seller being open to negotiating.
- YOUR BUDGET. Don’t overstretch yourself financially. Your dream home could become a nightmare if you’re struggling to keep up with payments.
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Check what contingencies to add
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See how much to allot for earnest money
You’ll want to know the best price to offer for the property and several factors will come into play.
Contingencies are there to protect you in case what is agreed upon in negotiations is not met. If a home inspection report shows numerous flaws in the structure, you can either negotiate for a lower price or walk away if the cost of repairs proves to be unfeasible.
Whether you’re buying a house in cash or through a mortgage, putting in earnest money is needed as proof of your capability to pay the seller for their home. You can allot up to 2% of the total home price but a higher amount puts you in better standing with the seller.
WRITE THAT OFFER
Seasoned real estate agents have helped countless clients create winning offers and their negotiation skills very much come to the fore during the whole home-buying process. That said, if you do wish to make an offer yourself, here are items that should be present and addressed in an offer:
- Seller’s name
- Property’s address
- Name/s of those who will appear on the title – yours included
- Your offered price and down payment
- Earnest money deposit
- Contingencies
- Concessions you may want to request from the seller (e.g., inclusion of certain fixtures, furniture, or artworks in the sale)
- Listing of fees and closing costs
- Preferred closing date
- Preferred move-in date
- A deadline for the seller to respond to your offer
WHAT COMES NEXT AFTER PRESENTING YOUR OFFER
It could go three ways:
First possibility: Seller accepts the offer
It’s a win for you! Now, all you have to do is to complete the rest of the home-buying journey as you let the home inspection begin, prepare all the documents, pay the earnest money, and close the deal.
Second possibility: Seller presents a counteroffer
Any back and forth between you and the seller will likely involve the overall price offered, but there are other things that can be dealt with during negotiations like concessions or requests for repairs.
Third possibility: Seller rejects the offer
Move on – don’t be discouraged by this. With your agent’s help, you can score a win with other homes, and in Palm Beach County, you’re spoilt for choice.
As you make your bid for houses for sale in Palm Beach Gardens, FL, and other areas of Palm Beach County, trust in the expertise of top West Palm Beach Realtor and Eric Telchin, to lead you to home-buying success. He and the rest of The Telchin Group LLC will endeavor to provide you with a selection of homes for sale in the area that will perfectly fit your desired lifestyle. Contact them at 561.301.0249 or send an email here.
