Do you bring your A game when making an offer on a property negotiation and is it really that complexed..?
Do you bring your A game when making an offer on a property negotiation and is it really that complexed..?
Most real estate investors carefully consider when putting in an offer on a new listing! But just how long should you wait to make that offer? — and when should you hold back or make that leap and put in that bid? Poker face springs to mind…..
Actually there’s no conventional advice for this timeline. The pace of real estate buying is determined in part by the market and the seller’s motivation which most buyers don’t take into consideration, however most real estate professionals agree that buyers shouldn’t wait too long when they find a house that’s a good fit and a good broker can certainly help their client get the royal flush they want…
Similar to a game of poker if you walk in having done your homework, have your financials in place, your terms and your bottom line and the tools to follow up quickly, such as a mortgage pre-approval letter if required, lawyers details and power of attorneys in place so the seller can see this offer is not a bluff you might just negotiate an extra 2-5% off.
Or do you want to chance and push your multi million € offer through a watts app take it or leave it offer?
“If a buyer knows what’s out there and what they want, then they should make the offer right away as you never know who else is interested, and you could miss out.” Why waste your time considering what you have had to do to get to that point!!
Use caution with early offers
Sellers usually have a somewhat predictable reaction to early offers: Most think they’ve priced too low when an offer comes in fast.
Real estate professionals have a mantra to assuage pricing fears: “The first offer is the best offer.” When a buyer knows the market and makes a bid, it’s because he or she sees a good value.
Make a fair proposal
“When a house has just come on the market, that’s when the enthusiasm is strongest,”
Demonstrate your appeal
Aside from making a fair proposal, there are other ways to make an early bid appealing.
First, make yourself look like a good candidate. Buyers who don’t have lots of contingencies — those who aren’t dependent on selling their current home to buy a new one, for example — are much more attractive to sellers.
Prospects with a solid 20 -30%% down payment are also more attractive. It’s not uncommon for a seller to accept a lower offer from a buyer who is a safer financial bet and has the highest chance of closing.
Understand your market
In fast-moving markets, however, the pressure to make an early offer can be crucial. Bidders in these scenarios are often seasoned buyers who have been looking for months and may have already lost out on multiple bids.
Is there ever a good time to wait on making an offer?
Real estate pros caution that if you don’t know the market well, haven’t looked around, don’t know what you want, don’t have preapproval, or need to sell your own property to make the deal work, an early bid might not be your best bet.
And in slower markets, the sense of urgency may be different. But the general advice “if you like a house, place a bid” holds true everywhere.
“Don’t wait. If you see something, make the offer. There is no point in waiting, there is a reason this property caught your attention maybe you need to take that leap.”
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