Advice for First Time Home Buyers -- Writing a "Win-Win" Offer on your first home

Atlanta Real Estate - First Time Home Buyers in Atlanta GA

Once you've found your "dream home", you and your agent will write a purchase agreement. In Georgia, the purchase and sale agreement was written by the Georgia Association of Realtors. While much of the agreement is standard, there are a few areas you and your agent can negotiate:

The Price -- What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity, and the urgency of the seller. While some buyers want to make a very low offer, just to see if the seller will accept, this often isn't a smart choice, because the seller may be insulted and decide not to negotiate at all. It's definitely a fine line and one that you and your agent will have to discuss at length.

Closing Costs -- You are able to ask that the seller pay a portion of your closing costs -- usually up to 3% of the purchase price -- but keep in mind that the seller may not be willing or able to significantly reduce the purchase price AND pay the closing costs. When negotiating, you have to look at the situation from the other side (the sellers side) as well.

Example: If the listing price is $300,000 and you ask for $10,000 off the purchase price and $5000 in seller paid closing costs, the seller will net $285,000 ($300k - $10k - $5k). The seller views this offer as $15,000 off the listing price. The seller's main concern is usually their bottom line.

Due Diligence Period - In Georgia, this was formerly called the "Right to Terminate Period". Usually we can negotiate 7 to 10 days to inspect the property, conduct appraisals, negotiate repairs and if you aren't satisfied with the results, you are able to terminate the agreement without penalty.

The Move-in Date -- If possible, be flexible on the possession date. Remember that most sellers need to purchase a new home after they sell their home to you, so as the buyer, if you offer the seller 24 to 72 hours to vacate the home after closing, it will be greatly appreciated by the seller and most likely, they will choose your offer over others!

Additional Property Often the seller plans on leaving major appliances in the home, however, which items stay or go is often a matter of negotiation.

Typically you will not be present at the offer presentation; we will present it to the listing agent and/or seller. The seller will then do one of the following:

• Accept the offer

• Reject the offer

• Counter the offer with changes

By far the most common is the counter offer. In these cases, your agent's experience and negotiating skills become powerful in representing your best interests. When a counter offer is presented, you and your agent will work together to review each specific area of the counter offer, making sure that you move forward with your goals in mind and ensuring that your Buyer's Agent negotiates the best possible price and terms on your behalf.

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If you have any questions about the home buying process, please email or call me anytime.

KERRY LUCASSE :: ATLANTA REAL ESTATE CONSULTANT :: 404.432.1844