A good real estate offer sets the foundation for a successful transaction, and it is important for both the buyer and seller to understand the elements of a good offer. When a seller is anxious to close on the property, they might be over-eager to accept the first offer that comes through. But, a few considerations need to be made to determine if the buyer is actually serious about purchasing the home.
Component #1: Proof of Funds
Even if the offer is good, it won’t mean anything if the buyer doesn’t have the ability to actually pay the price they are offering. So, it is important to look for proof of funds to determine that you aren’t wasting your time by moving forward with the deal. Most buyers will be able to provide pre-approval or another proof to show they have the amount of money that they are offering. Keep in mind that a pre-approval is different from a pre-qualification letter, so you need to make sure that you are getting the right type of proof.
Component #2: Price
Some offers will match the asking price, but there are other situations where the buyer might be offering a lower price. If that price is too low, then it is possible for the seller to make a counteroffer to see if they can find middle ground. Consider the price that is listed on the offer and see if it is close enough to the value of the home in order to open up the conversation. If you don’t think that an agreeable price can be reached, then it is ok to reject the offer and wait for another opportunity.
Component #3: Earnest Money
When a buyer offers earnest money, it is showing that they are truly interested in purchasing the home. The earnest money puts a little “skin in the game,” and offers with earnest money are considered more seriously than offers without the earnest money. The amount of this earnest money varies depending on the area, and the best thing that you can do is talk with an experienced Atlanta real estate agent to know how much earnest money you should be offering for any type of home. Whether you are the buyer or the seller, it is essential that you have a trusted real estate agent by your side. The right agent will be able to help you negotiate a deal that is fair for both parties involved. A good offer in the beginning will set the tone for a successful closing, making the process much easier for everyone involved. At Duffy Realty of Atlanta, we can help you put together the best offer when you are buying a home. We have many years of experience in the real estate market, and we know what it takes to get a good offer put together. Contact our qualified team for more information about the other components that need to be included in your real estate offer: (678) 318-1700