Making An Offer
• A Resource For Buyers •
A typical seller may look at ten or more offers before accepting one. Sellers are inundated with interest in the current climate, so a competitive offer is necessary to warrant attention — an offer that has the best chance of getting chosen by the seller.
A "lowball offer" is defined as an offer on a property that is substantially less than the seller's asking price. Lowball offers can sour a prospective sale and discourage the seller from negotiating at all. Unless the property is significantly overpriced, the lowball offer will probably be rejected outright. Research comparable sales in the same neighborhood before making an offer. In some cases, sellers on the move, or who have another property under contract, may accept a lower price with a quick escrow.
List Versus Sale Price.
List is the advertised price for a property, usually an estimate of what the seller hopes to receive. The amount the property actually sells for is called the "sales price." It may be the same as the list price, or higher or lower, depending on market conditions and how accurately the property was originally priced. Sellers may be open to negotiate or adjust the list price if there have been no offers within the first few weeks of the property's listing period.
List Versus Appraised Value.
List is a seller's advertised price; a figure that represents only a rough estimate of the final sale price. Sellers can price high, low, or close to what they hope to receive. To determine whether or not the list price is fair, consult comparable properties in the same neighborhood. Appraisal value is a certified appraiser's estimate of the worth of the property, and it is based on comparable sales, condition of the property, square footage, and numerous other factors. Banks and lending institutions issue loans based on the appraised value.
What Contingencies Should Be Included?
Most offers include two basic contingencies: 1) Financing, which makes the purchase dependent on the buyers' ability to obtain a qualifying loan; and 2) Inspection, which allows buyers to have professionals inspect the property (to the buyer's satisfaction). Under certain circumstances, buyers could forfeit the deposit, called "earnest money," for backing out of the deal if the reason is not stipulated in the contract. Purchase contracts must include the seller's responsibilities, such as passing clear title, maintaining the property in its present condition until closing, and performing any agreed-upon repairs.
What Must The Seller Disclose?
The seller and seller's agent are required to disclose all facts that impact the value or desirability of the property. Things such as: homeowners' association (HOA) dues; whether work completed on the house is permitted and meets local building codes; the presence of any neighborhood nuisances or noises (which a prospective buyer might not notice) like a dog that barks every night; death on the property within three years; any restrictions affecting the use of the property (zoning ordinances or HOA rules).
Who Keeps The Furnishings?
It depends. Fixtures, property that is permanently attached to a house (such as drapery rods, built-in bookcases, carpet or a furnace), stay with the house unless specified otherwise in the purchase contract. That said, anything that is not nailed down is negotiable. This includes appliances such as the washer, dryer, range/stove, refrigerator, and even the piano.
Remember, the list price is what the seller hopes to receive, but it is not necessarily what they will settle on. Our real estate agents are excellent sources for learning about local housing market conditions. BC Adobe Realty would love to assist you with the purchase of your Boulder City / Greater Las Vegas Area property. If you have any questions, please reach out to us by email or call (702) 293-1707.