|
Q: |
Is a low offer
a good idea? |
|
A: |
While your low
offer in a normal market might be rejected immediately,
in a buyer's market a motivated seller will either
accept or make a counteroffer.
Full-price offers or above are more likely to be
accepted by the seller. But there are other
considerations involved:
* Is the offer contingent upon anything, such as the
sale of the buyer's current house? If so, a low offer,
even at full price, may not be as attractive as an offer
without that condition.
* Is the offer made on the house as is, or does the
buyer want the seller to make some repairs or lower the
price instead?
* Is the offer all cash, meaning the buyer has waived
the financing contingency? If so, then an offer at less
than the asking price may be more attractive to the
seller than a full-price offer with a financing
contingency. |
|
|
Q: |
What
contingencies should be put in an offer?
|
|
A: |
Most offers
include two standard contingencies: a financing
contingency, which makes the sale dependent on the
buyers' ability to obtain a loan commitment from a
lender, and an inspection contingency, which allows
buyers to have professionals inspect the property to
their satisfaction.
A buyer could forfeit his or her deposit under
certain circumstances, such as backing out of the deal
for a reason not stipulated in the contract.
The purchase contract must include the seller?s
responsibilities, such things as passing clear title,
maintaining the property in its present condition until
closing and making any agreed-upon repairs to the
property. |
|
|
Q: |
Whose
obligation is it to disclose pertinent information about
a property? |
|
A: |
Obligations to
disclose information about a property vary from state to
state.
Under the strictest laws, the seller and the seller?s
broker, if there is one, are required to disclose all
facts materially affecting the value or desirability of
the property which are known or accessible only to him.
Items sellers often disclose include: homeowners
association dues; whether or not work done on the house
meets local building codes and permits requirements; the
presence of any neighborhood nuisances or noises which a
prospective buyer might not notice, such as a dog that
barks every night or poor TV reception; any death within
three years on the property and any restrictions on the
use of the property, such as zoning ordinances or
association rules.
It is wise to check your state's disclosure rules
prior to a home purchase. |
|
|
Q: |
How do you
find out the value of a troubled property?
|
|
A: |
Buyers
considering a foreclosure property should obtain as much
information as possible from the lender about the range
of bids being sought.
It also is important to examine the property. If you
are unable to get into a foreclosure property, check
with surrounding neighbors about the property's
condition.
It also is possible to do your own cost comparison
through researching comparable properties recorded at
local county recorder's and assessor's offices, or
through Internet sites specializing in property records.
|
|
|
Q: |
Are low-ball
offers advisable? |
|
A: |
A low-ball
offer is a term used to describe an offer on a house
that is substantially less than the asking price.
While any offer can be presented, a low-ball offer
can sour a prospective sale and discourage the seller
from negotiating at all. Unless the house is very
overpriced, the offer will probably be rejected.
You should always do your homework about comparable
prices in the neighborhood before making an y offer. It
also pays to know something about the seller's
motivation. A lower price with a speedy escrow, for
example, may motivate a seller who must move, has
another house under contract or must sell quickly for
other reasons. |
|
|
Q: |
What is the
difference between list and sales prices?
|
|
A: |
The list price
is the price tag put on a house in a real estate
listing; it usually is only an estimate of what the
seller would like to get for the property. The sales
price is the amount a property actually sells for. It
may be the same as the listing price, or higher or
lower, depending on how accurately the property was
originally priced and on market conditions.
A seller may need to adjust the listing price if
there have been no offers within the first few months of
the property's listing period. |
|
|
Q: |
Can you buy
homes below market? |
|
A: |
While a
typical buyer may look at five to 10 homes before making
an offer, an investor who make bargain buys usually go
through many more. Most experts agree it takes a lot of
determination to find a real "bargain." There are a
number of ways to buy a bargain property:
*Buy a fixer-upper in a transitional neighborhood,
improve it and keep it or resell at a higher price.
* Buy a foreclosure property (after doing your research
carefully).
* Buy a house due to be torn down and move it to a new
lot.
* Buy a partial interest in a piece of real estate, such
as part of a tenants-in-common partnership.
* Buy a leftover house in a new-home development.
|
|
|
Q: |
Who gets the
furnishings when a home is sold? |
|
A: |
Fixtures, any
kind of personal property that is permanently attached
to a house (such as drapery rods, built-in bookcases,
tacked-down carpeting or a furnace), automatically stay
with the house unless specified otherwise in the sales
contract. But you can consider anything that is not
nailed down negotiable. This most often involves
appliances that are not built in (washer, dryer,
refrigerator, for example), although some sellers will
be interested in negotiating for other items, such as a
piano. |
|
|
Q: |
What are some
tips on negotiation? |
|
A: |
The more you
know about a seller's motivation, the stronger a
negotiating position you are in. For example, seller who
must move quickly due to a job transfer may be amenable
to a lower price with a speedy escrow. Other so-called
"motivated sellers" include people going through a
divorce or who have already purchased another home.
Remember, that the listing price is what the seller
would like to receive but is not necessarily what they
will settle for. Before making an offer, check the
recent sales prices of comparable homes in the
neighborhood to see how the seller's asking price stacks
up.
Some experts discourage making deliberate low-ball
offers. While such an offer can be presented, it can
also sour the sale and discourage the seller from
negotiating at all. |
|
|
Q: |
What are the
standard contingencies? |
|
A: |
Most offers
include two standard contingencies: a financing
contingency, which makes the sale dependent on the
buyers' ability to obtain a loan commitment from a
lender, and an inspection contingency, which allows
buyers to have professionals inspect the property to
their satisfaction.
A buyer could forfeit his or her deposit under
certain circumstances, such as backing out of the deal
for a reason not stipulated in the contract.
The purchase contract must include the seller?s
responsibilities, such things as passing clear title,
maintaining the property in its present condition until
closing and making any agreed-upon repairs to the
property. |
|
|
Q: |
What is the
difference between list price, sales price and appraised
value? |
|
A: |
The list price
is a seller's advertised price, a figure that usually is
only a rough estimate of what the seller wants to get.
Sellers can price high, low or close to what they hope
to get. To judge whether the list price is a fair one,
be sure to consult comparable sales prices in the area.
The sales price is the amount of money you as a buyer
would pay for a property.
The appraisal value is a certified appraiser's
estimate of the worth of a property, and is based on
comparable sales, the condition of the property and
numerous other factors. |
|
