When it comes to Real Estate Transaction, it all boils down to what each party can offer. Making a Good Offer will definitely win you the negotiation and could form a good camaraderie between the buyer and the seller. Below are some items to consider when making an Offer.
The Buyer and Seller should compromise when it comes to pricing. They have to meet somewhere in the middle to accommodate both Parties. Of course on a normal offer, the buyer would want a lower price than what is offered while the seller would want to get the highest price he could get for profit. That’s why each party has to negotiate with each other to come to an agreement.
Amount of Earnest Money the Buyer can Deposit
In order to show good faith on a real estate transaction, the buyer would have to present an earnest money deposit to the seller to guarantee that they are interested in buying the property. Usually the amount of earnest money that is being offered is 1% of the asking or of the sales price and sometimes it can be higher. The seller can use the earnest money to help out with closing cost fee and other expenses when the transaction push through.
What Will be Included in the Offer
During the negotiation the buyer and seller will have to come to an agreement on what will be included in the transaction. The seller must present what he can offer on the transaction. If he will cover the half or a fraction of the expenses for the renovations or if he will include some appliances or furnishings within the house.
Both Parties should provide a specific time lines of transaction process. Like when the contract will expire, when will the transaction close when will the buyer move in and when are the deadlines and so on and so forth. Having a timeline would notify both parties on when their turn in the process would come and end. An organized timeline will make the transaction process smooth and hassle free process.
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WHAT ARE THE COMPONENTS OF A GOOD OFFER TO BUY A HOME? Mike Brown Group