I have written lately about how many Multiple Offer Situations have been popping up with my buyers in 2009. The buyer activity has certainly increased and I often get asked, “How do we make the best offer?”
A lot of things go into your Purchase Agreement when you make an offer on Real Estate Property in Minnesota. The major things are Price, Type of Loan, Seller Paid Closing Costs, Closing Date, Contingencies, and Title Companies.
To make the best offer and get it accepted, try to take these things into account:
- Price – don’t low-ball sellers (banks or owners)
- Cash is King – have family or friends finance your purchase and pay them monthly
- Seller Paid Closing Costs – this effects their “bottom line” and may break the deal
- Close within 30 days – banks want to close faster, so be prepared beforehand
- Minimize Contingencies - Inspection, Financing, De-Winterization, etc.
- Use the bank’s/seller’s Title Company - this can help seal things with banks
Some of these things may not be negotiable for you, so pick your compromises carefully. Always check with your Lender and Realtor when putting together your offer in negotiations.
Most First Time Buyers tell me “I want a DEAL”, to which I ask them, “What’s more important, getting a DEAL, or getting a house? If you try to get too much a DEAL, you’ll end up with nothing.”
My advice: Make a strong bid if you find “The One”
