Resource: Arizona REALTORS® Legal HotlineFACTS:Acting on behalf of an estate, the court appointed personal representative listed the property for sale shortly after the death of the owner.
Making the Right Offer
Dated: June 15 2021
Making the right offer is crucial when you have your eye on a home. Offer too little, and you may get passed over for the next buyer. But, on the other hand, offer too much, and you may need to reevaluate your budget for furnishings or upgrades. So, how do we navigate one of the most challenging parts of buying a new property?
Want to make sure you have a firm offer at a price you can afford? Here's when you might offer above, below, and at the listing price.
- At List Price: A home that's within your budget, move-in ready, and comes with most of the amenities you want could be worth an offer at the listing price. But you'll want to make sure there's not much competition for the property. Truth? Most homes receive multiple offers in our current Prescott area market, and many sell over the asking price with an all-cash offer!
- Below List Price: Does the home need serious work? If so, you may want to offer below the selling price. In this case, bidding less money could free up cash for future repairs and necessary upgrades. Truth? There is minimal opportunity for this strategy in our current sellers' market.
- Above List Price: You may want to go beyond listing price if you're in a particularly active market or you know you're up against several buyers. Together, we can determine what other homes in the area are going for, and we'll craft your best competitive offer.
Here are some additional preparation tips:
- Be prepared to make your first offer your best and final offer! Writing an offer hoping to receive a counteroffer is not a strategy that works in our current super-heated market.
- Offering cash? Have a current proof of funds letter from your lender to submit with your offer.
- Using a loan? Have a current lender prequalification. Better yet, have a preapproval which is a more official step that requires the lender to verify your financial information and credit history, a stronger sign of what you can afford and adds more credibility to your offer than a prequalification.
- Be as flexible with the "terms and conditions" of your offer as you can be.
I'll share with you what I know about a sellers' preferences for close of escrow timing, etc. to help with this.