Another one of Mother Nature's tricks! This is in Roanoke, Virginia.
Spring had sprung! Early shrubs and trees were blooming! Daffodils were blooming!
Then Mother Nature's says, "Gotcha! Here is some snow that is so pretty with flowers!"
This picture was taken at a very busy intersection. The lot was owned by an individual who had planted the tree and shrub, just because she thought it was pretty.
When you first look, it almost looks like a lake in the background. That is a 4 lane road.
No, this wasn't taken this year. I thought you might enjoy it as a harbinger of Spring!
By the way, I took this photo. Feel free to share it without my permission!
If this were a real National Emergency, I would have headed for a nice cave in the mountains in Roanoke, Virginia. Do I have your attention?
I want to submit this for your comments. I sent this to a school teacher, who is about to retire. She wanted more info!
I banged this out! Had a problem with format and sent to my office. She improved it, but sent back to me in a PDF I couldn't edit! Here is my original Word Doc, with all the mistakes! It is rough!
Real Estate 101
Chapter ?? Negotiating an Offer
There are no hard and fast rules about negotiating an offer. The Seller wants the best price for him! The Buyer wants the best price for her!
Here are some guidelines for the Buyer.
•1- The best way to get a good price is to be quick and clean. A cash offer with a quick closing date will get the best price. The one exception is when the closing date is too quick for the buyer to get out.
•2- If you need a loan to purchase the property, you will need a pre -qualification letter from a reputable lender presented with your offer.
•3- Earnest Money is the amount of the check you present to the Seller with your offer. If the offer is accepted the real estate broker will deposit it in his Earnest Money Escrow account. Please know your check will be cashed, if the offer is accepted! This money belongs to the Buyer. It will go toward your down payment at closing. If you don't get your loan, or some other contingency, like a home inspection, can't be reconciled, you will get that money back.
If you default on the contract, by just changing your mind, you will not only lose that money, but you could be sued for the entire purchase price plus damages. You don't want to make an offer unless you are sure that you want the property.
If the Seller just changes his mind, he can be sued too!
•4- The norm in this area is for Sellers to pay all their normal costs and for the Buyer to pay all of hers including loan fees, closing costs, and any points. If you are asking the Seller to pay some of these costs for you, you need to specify the amount in your offer. All the Seller cares about is the amount of money in his pocket! If you are offering a Seller $100,000 for his property asking him to pay $3,000 of your costs, it is basically the same a clean offer for $97,000. There are few exceptions.
•5- It is important to look at the similar properties on the market, the competition, and to know what similar properties have sold for--we call these comps. This will help you get a better feeling about the value of the property. You can also check the Assessed Value. That is the value that is used for the property for real estate taxes. It usually doesn't reflect the true value of property in this area, it is usually low , but it can be very high! Once again, there are no hard and fast rules. The assessed value just gives you a measuring stick to compare similar properties.
•6- When you make an offer, the Seller has 3 options. He can accept your initial offer-you now have a contract. He can come back to you with a higher number than your offer, or add conditions, such as accepting the property in "As Is" condition That is called a counteroffer. He can decide not to respond to your offer at all. This usually happens when your offer is far lower than what a seller will accept. They don't think you are serious. You can never tell what a Seller will do, until you make an offer.
These are just a few of the basics to get you started. More answers later.
Barbara
Sometimes, you just have to throw your hat in the ring and get on with life!
Should a buyer buy now, or wait with the hopes that prices and interests rates will go lower?
Will that special home still be available, when you are ready! Will the crystal ball prognostications about rates actually become a reality? If so, for how long?
I have been waiting to learn the best way to blog, instead of just doing it. It took me 18 months to be happy with the design of my first website before I went public. What a waste!
There are times for caution, but too much caution can translate into a missed opportunity. Thought I would do this before 2009. Happy New Year!
Barbara has been selling homes in Roanoke, VA. and surrounding counties in Virginia for over 27 years. Her special love is Historic Homes. Barbara gives special attention to both buyers and sellers!
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
