Key Tactics for Buyers

Bonnie Jessee, Realtor

530 412 3984

 

How Does One Determine Offer Pricing?

Work closely with your Realtor to learn as much about local market values as you can. Check out comparable properties; both asking prices and sales prices. Ask your Realtor to prepare a comparative market evaluation of the property.

When market values are rising, there is a bit of guesswork involved in preparing an offer and offer pricing. You may consider offering a price close to asking (with the assistance and expertise of your Realtor) if the property is priced well.  It can be devastating to make a low ball offer only to be rejected rather than countered.

Are Sellers Required to Inform Buyer of Other Offers?

Sellers are not legally obligated to disclose the terms of other offers to prospective buyers or the buyers Realtor.

How Do I Confirm Facts?

Home inspections, seller disclosure requirements and the Realtors knowledge and experience will help. Disclosure laws vary by state, but in some states, the law requires the seller to complete a real estate transfer disclosure statement (California has such a document).

A brief summary of the things you should expect to see in a disclosure form:

In the kitchen — a range, oven, microwave, dishwasher, garbage disposal, trash compactor.

Safety features such as burglar and fire alarms, smoke detectors, sprinklers, security gate, window screens and intercom.

The presence of a TV antenna or satellite dish, carport or garage, automatic garage door opener, rain gutters, sump pump.

Amenities such as a pool or spa, patio or deck, built-in barbeque and fireplaces.

Type of heating, condition of electrical wiring, gas supply and presence of any external power source, such as solar panels.

The type of water heater, water supply, sewer system or septic tank also should be disclosed.

Sellers also are required to indicate any significant defects or malfunctions existing in the home’s major systems. A checklist specifies interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, as well as the electrical and plumbing systems. The form also asks sellers to note the presence of environmental hazards (an NHD or Natural Hazards Disclosure should be part of your documents), walls or fences shared with adjoining landowners, any encroachments or easements, room additions or repairs made without or with the necessary permits or not in compliance with building codes, zoning violations, citations against the property and lawsuits against the seller affecting the property. People buying a condominium must be told about covenants, codes and restrictions or other deed restrictions, as is applicable for any HOA. It is important to note that the simple idea of disclosing defects has broadened significantly in recent years. Also, the home inspection and home warranty industries have grown significantly to accommodate increased demand from buyers. Work with your Realtor about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.

Are Contingencies Standard and What Are They?

Most purchase offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyers’ ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. As a buyer, you could forfeit your deposit under certain circumstances, such as backing out of the deal for a reason not stipulated in the contract. The purchase contract must include the seller’s responsibilities, such things as passing clear title, maintaining the property in its present condition until closing and making any agreed-upon repairs to the property.

Do You Have Negotiating Tips?

There are several fundamental rules to negotiating successfully. One is do your research, in conjunction with your Realtor. Do not allow yourself get hurried into any decisions without the thought and consultation of your Realtor. The more you and your Realtor understand a seller’s motivation, the stronger a negotiating position you are in. For example, a seller who must move quickly due to a job transfer may be amenable to a lower price with a quick escrow. Other so-called "motivated sellers" include people going through a divorce or who have already purchased another home. Remember, that the listing price is what the seller would like to receive but is not necessarily what they will settle for. Some real estate experts discourage making deliberate low offers. While such an offer can be presented, it can create an unpleasant situation regarding the sale and discourage the seller from negotiating at all thereby a rejection rather than a potentially workable counter offer.

Happy Home Hunting!

 

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