What are the elements that make a good offer in real estate investment?
When investing in Durham real estate, it is important to come up with a good offer for you to close the transactions as soon as possible. As the buyer, you need to realize what makes a good offer when investing and come up with a proposal that the seller and other agents will accept easily.
A good offer starts with crucial elements such as the price. Different neighbourhoods have different prices of homes. Researching on various prices can help you determine the value of the property based on similar ones. As the buyer, you are looking for the lowest price while the seller needs the highest price from the sale. The price that you both choose should please all the parties involved in the process.
Another element that makes a good offer is the presence of a pre-approved loan. As the buyer, you should talk to the mortgage lender to give you a prepaid loan so that you can assure the seller of your financial capacity to buy the property.
Send your details to the seller
You should send the seller your bank statements, tax returns and paycheck stubs to prove that you have been pre-approved for the loan. This prevents the seller from withdrawing the house in the market then losing valuable marketing time if you don’t buy the property. As you submit your offer, it is also important to indicate the form of financing you intend to use. You can opt for hard or private money.
The earnest money is also another component that shows that you have good intentions of buying the property. It is beneficial to a seller since it gives them peace of knowing that you will not back out from the agreement at the last minute before closing the transaction. Even if you change your mind, the seller can keep the earnest money. In the case that both parties go on with the transaction, this earnest money helps to settle related expenses incurred in the home sale. Some people do not consider earnest money though it can appeal to sellers.
Negotiate the closing cost
A good offer also has a closing cost. Both parties determine the exclusions and inclusions of the sale. You need to agree if the deal will include things like furnishings and appliances. As the buyer, you may be asking for some repairs in the house that the seller should fulfil before you accept the property. You should both agree on whether the seller should install new flooring or include upgrades before selling the home. You can also negotiate for other items depending on the condition of the home.
Timing is an essential aspect of real estate investments. Both sides should agree on when the sale will take place. A good offer should include meetings deadlines so that both sides move at the same pace. Such deadlines also ensure that neither side has to wait for so long before the transaction is complete. Ensure that you work with a good real estate agent to help you get good deals from the transaction.