Are You Ready to Make an Offer to Purchase Plano Real Estate?

Making an offer to purchase and actually closing on that purchase are two different actions, but many times  home buyers confuse the two especially when the purchase offer is not the final negotiation due to contract contingencies.  In some areas on the East Coast, for example, it is common to write a letter of intent to purchase a home so save a lot of time and frustration. However, many other states contain provisions in their standard sales contracts that let a buyer withdraw their offer and get back their entire earnest money deposit.

Are You Hesitating to Make an Offer?

If the home you are considering buying is likely to sell quickly, and if you have a way to later cancel the contract, you should immediately make the offer. There is no reason for you to wait.  Don't sleep on it or try to get every single question answered a head of time or you may lose the home to another buyer. Somebody else could beat you to the draw and steal it out from under your nose while you're busy weighing the pros and cons.  This is common place with the sale of popular .  If you really like the home, odds are other home buyers will like it too. 

The Reality of Purchase Offers

When a home seller accepts an offer, they are hoping the buyers will complete the transaction at the price agreed upon and believes there is nothing wrong with the condition of their home. The home buyer is hoping the transaction will close because the home is in great condition.  It's rare that either of those expectations are the reality. No home is perfect and many conditions can change once a contract is accepted.  You should utilize the services of professional to help avoid issues that could derail the sale or cost you additional money. 

·         Mortgages can be rejected

·         Buyers often submit a repair list.

·         Low appraisals can kill the sale.

Types of Homes That Quickly Sell

In a seller’s market, almost every home sells quickly. In a buyers’ market, the sale times will be longer. There are many inherent characteristics and qualities that determine whether homes are likely to sell fast, but these are the top two:

·         Cosmetic fixer uppers in good locations and priced below comparable homes.

·         Ready to move in homes in great neighborhoods, excellent condition and priced right.

If the home you want to buy falls within those two categories, you should make an offer on it quickly, providing you have cancellation rights. Some Realtors don’t like to waste time writing an offer that a buyer might later cancel and will try to persuade you from making an offer. Some might not even disclose to you that you have a certain number of days to withdraw your offer. Don't hire a Realtor who doesn't have your best interest at heart.

Benefits to Making Immediate Offers

·         The obvious reason to make an offer right after you find a home you love is you will prevent anybody else from buying it. When the seller accepts an offer from you, the seller cannot accept another, except a back-up offer, good only if your contract is canceled by you.

·         If your offer is first and only offer, you can many times negotiate the price and terms. You can try to make a lowball offer but your negotiation power is minimized if there are other offers.

·         Even if other buyers are interested, they will generally back off once the seller accepts an offer, opening the door for your renegotiations. 

Cons to Making Immediate Offers to Purchase

·         If you're undecided between two homes and go enter into a contract on property 1, property 2 might not be available if you should back out of the first contract.

·         Return of an earnest money deposit is not a given. Both parties are required to sign a cancellation agreement. In some States a seller can delay signing for 30 days, without penalty, an authorization to return the good faith deposit.

·         Buyers can incur credit report, appraisal and home inspection fees that are non-refundable. Generally, closing cost, escrow and title policy costs are waived upon cancellation.Given the alternative of losing the home you want it is advantageous to learn from the mistakes of others who have lost opportunities.