What most people do before they make an offer on a house is to:
- Get the address
- Look at what it’s worth
- Look at what work needs to be done and the cost to fix it
- Then make an offer
Stop, this is a terrible way to make an offer. The big key to making an offer is this:
- You have to get a great understanding of the situation.
- You need to know exactly how much the seller owes on the property.
- You need to know whose names are on the loan.
- You need to know whether person’s name on the loan is a deceased person.
- You need to know how much the mortgage payment is each month.
- You need to know why they are selling.
- What’s going to happen if they don’t sell their home?
- Where are they moving to?
- How difficult is it going to be for them to move?
- How long have they lived in this home.
- Do they have sentimental value in the property?
- Do they hate the home?
- Do they like their neighbors, do they hate their neighbors?
- How much cash do they need in their pocket?
You have to know as much possible as you can, because when you do, you can then structure your offer in a manner that fits the seller’s needs as well as your own. This is a very different approach, most buyers do not do this. What most people do is that they want to focus on what the value of the property is and then apply a discount for how much the repairs are going to cost and then make an offer.
This is a good way not to get a good buy and an accepted offer in today’s market. Why I say that is because in today’s market everyone has some ideal of what their property is worth. When you know as much as possible about why the seller is selling you can then measure how much motivation the seller has to sell. You then can structure an offer that fits the seller’s needs as well as your own needs.
In summary, before you make an offer you have answers to a lot of questions. By learning all the information you can about why the seller is selling, you can make a more informed and creative offer. In other words, the way to make an offer on a property wisely is to learn as much as possible about the seller’s selling situation at an in-depth