4 | Make an Offer and Negotiate like a Master
Once you find “the one”, we get you ready to make a compelling offer that protects your best interests and for the best value possible. This process will look like:
We find what the market value of the home you are interested in by reviewing data on the active and sold properties in the area as well as finding out if there are any encumbrances registered on title. This enables us to make an informed decision and begin to build our case for negotiations, which we will get to soon…
Prepare the Offer and Protect Yourself with Conditions
Once we are ready we will craft an offer that has your best interests protected. We will discuss price, possession date, deposits, and any other terms that are important to your position. Part of that is discussing your conditions. The conditions protect you from getting a home that you’re unable or unwilling to buy. The condition period is usually 2 weeks.
Typical conditions include:
- Financing – We want to make sure your bank values the home at the purchase price and will lend you the full amount. Sometimes this requires an appraisal, but we help coordinate those for you.
- Home Inspection – No home is perfect, not even new homes, but we want to make sure there are no hidden surprises that will cost you down the road. An inspection takes approximately 2-3 hours and you get a detailed report that serves as a user’s guide on your home. If anything comes up during the inspection we can revisit these with the seller and renegotiate as needed
- Sale of Buyer’s Property – Sometimes you may need to sell your home before buying the next one if it hasn’t sold yet. We can put in this condition to make sure you only purchase the home when your home sells.
Condo Document Review
When purchasing a condo you are essentially “buying in” to a corporation (like buying a stock in a company). A condo document review is essentially an audit done by a third party to ensure the condo corporation is run well and managing their finances (so there are no surprise special assessments / “cash calls”
Negotiate Like a Master
To get the best results, you need to know what you’re doing. From negotiating million dollar homes to conditions on a home inspection, we must be strategic and level-headed to get the best possible outcome.
You see, negotiation is really a complex dance with 3 phases:
- Gather Information – We ask questions, prod, get relevant information to help build our case
- Build Rapport – We want to create alliances and advocates even out of those we are negotiating against, and stay as level-headed through negotiations (this way we keep control)
- Bargain Hard – We don’t just take what they give us, we build our case and push hard to get the best value
Firm Deal – Congratulations!
After we have negotiated the deal and satisfied all the conditions, the contract is then “firm” and you officially bought a house! Time to high-five, congratulations!!