Making an Offer
In Colorado when you find a house your agent is the one who will prepare the offer. The Colorado Real Estate Commission has approved contract forms that your agent will fill out, using your specifications.
- How you would like to take title, as a joint tenant or tenant in common
- How much you would like to offer for the home
- When you would like to close
- What personal property (if any) you would like included with the home
- What type of financing you plan to use
- What your interest rate and terms are
- How much will your down payment be
You need to know
Knowing the above elements will expedite the writing of the offer.
How much should you pay?
Typically a seller expects an offer that is not exactly what the list price is. However these terms can and will change in a “hot” market where either the home is exceptionally special or there is no competing inventory. If you have been looking at enough homes, you will get a good feel for what this number should be.
Back up the price with comparables.
The price you offer should be backed up with comparable sold properties in the neighborhood. Most re sale homes can be compared to other homes on the market. They may be identical or not, but basing your offer on what has been spent for similar homes in the past (plus or minus a premium for time, condition, location, size, etc.) you can determine what a “fair” offer should be.
Elements of negotiation
The negotiation can go in many ways, it’s impossible to select only one scenario. Buyers and sellers go back and forth on a variety of issues. If we were to narrow the issues down to 5 they would be the following:
- Personal Property
- Inspection Items/Additional Provisions
It is not uncommon to discover the seller is more interested in securing a quick closing at a lesser price. If a buyer is ready to move quickly this scenario works very well. It could just as easily be that seller prefers to wait until they have a place to go and will reduce the price for an extension of the closing date. Give and take is common and to be expected in a negotiation. No two sales are identical.