So the process has begun. You have found yourself an excellent local Russian River Real Estate agent and you have ventured out to tour homes for sale in Guerneville. Now you have found the perfect home and you are ready to write an offer. First Millar and Company would like to say congratulations on finding Your Home In Paradise. It is a tedious process sifting through the homes that aren't quite right in order to find the one that you can see your future in however, you did it! Now its time to get the ball rolling and make sure that you end up with the keys to that gorgeous home in your hands.
Writing An Offer
When you are ready to put on offer on a home there are a few questions that are going to pop into your head. It is important that you address these questions as soon as possible with your agent so that you can work out what you need to know before you put an offer on a home.
The first question you will want to ask is how much should I offer for this home? To begin with, you should search homes for sale in Guerneville. Go out and look at lots of properties so when you find the home that you want you can compare what other homes are worth to what the asking price is on the home you have chosen to place an offer on. A good idea is to ask your agent about homes that have recently sold in Guerneville on the street where your prospective home is located. Find out how much they sold for, what the asking price was, and if possible how many offers were received on those homes. This will help you to determine how much you will need to offer in order to get the attention of the seller.
The next question you should ask is under what circumstances should I offer an amount that is over asking price? This is a hard question to answer but what it really comes down to is trusting your agent. Sometimes a home will be underpriced in order to create demand from buyers. If you are going to obtain a loan you will need to ask if there are any cash offers on the property because loan offers will need to offer more than a cash offer. You will need to talk to your agent and find out if the home in their opinion is an appropriate price. Allow them to draw on their experience and knowledge of the local Guerneville Real Estate market to help you decide what range your offer should be in. If your agent tells you that you should offer over asking price due to the home being underpriced then the decision will fall into your lap. You will need to decide what this home is worth to you? What price are you willing to pay to secure this home for your future.
What else influences sellers when they are looking at offers?
Now that you have established an amount that is comfortable for you, you're going to need to consider a few additional things that will influence a seller's decision about which offer to accept. The first thing that you will need to think about is whether your offer is cash or loan. If you have the cash to place a cash offer then you will not need a loan contingency and therefore you will be able to place on offer without a loan contingencies. If you do not plan on doing inspections and are willing to take the home as it is then you will not need an inspection contingency time period either. Offers without contingencies are more likely to be accepted over ones with contingencies if the prices are close because it offers a sooner closing date. Having said that it is important that you do any and all inspections that you deem necessary and your agent will be able to let you know more about the Inspections as well. Contingencies need to be considered very seriously because as soon as you release your contingencies you will not be able to get your Earnest Money Deposit back. In the long run, the best thing for you to do is to work closely with your local Russian River Real Estate agent to make sure your offer is as appealing as possible while still protecting you against any potential issues.
Getting It Done!
Now that you have decided on an amount, closing time frame, and contingencies it is time to present your offer to the seller. This can be an anxious time for buyers as their local Guerneville Real Estate agent communicates with the listing agent and the listing agent consults the seller. The seller may decide to counter and you will have the chance to respond to the counter. The negotiations are handled through the agents which takes the stress off of your shoulders because you know you have someone who only has your best interests in mind. Once your offer gets accepted then escrow opened and Earnest Money is due within three business days or an amount specified in the Residential Purchase Agreement.