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Lake Tahoe - Truckee, CA Real Estate for Sale

How Much Should I Offer | Buyer

How Much Should I Offer | Buyer

How Much Should I Offer? | Buyer

Generally, you will have a good feel for the current Tahoe real estate market, and where home values are at.  In addition to your own estimate on the Tahoe home market value, I will help you with the market valuation process for the Tahoe home you want to buy.  There are several things to consider as you develop your purchase offer:

  • Is the asking price in line with prices of similar homes in the area? I will conduct research, called a “Competitive Market Valuation” or CMV (some refer to this as a Comparative Market Analysis – CMA), on comparable properties, to help you come up with an educated opinion on the worth of the property.  If the home is subject to an appraisal we need to make sure your purchase price will appraise.
  • Is the home in good condition – or will you have to spend a substantial amount of time and money making it the way you want it?
  • How long has the home been on the market? If it’s been for sale for a while, the seller may be more eager to accept a lower offer.
  • How much mortgage will be required? Make sure you really can afford an offer that you plan to make.
  • How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted.

Common points of negotiation

The buyer and seller may negotiate many of the associated costs of the transaction. Some common items are: price, financing, closing costs, repairs that need to be made, appliances and fixtures, landscaping, painting and occupancy time frame.

Counteroffers

Offers are occasionally rejected outright, but it is common for a seller to counter an offer with terms acceptable to them. But don’t let this stop you. Now you begin negotiating. I will help you through the entire negotiation process.

There are many options to explore:

  • Maybe you offer more money, but ask the seller to cover some or all of your closing costs or to make repairs that wouldn’t normally be expected.
  • Offer a longer escrow period so the seller with have more time to move, if you know extra time is what they need.
  • Perhaps you shorten the escrow period, and offer a quick close if it’s a second home
  • If you’re an all cash offer perhaps your offer isn’t contingent upon appraisal
  • Perhaps you take the home fully furnished, so the seller doesn’t have to move the second home contents.  Yes, orange crushed velvet chairs are not your decorating style, but if it gets you the home, take them.
  • Offer to honor previous vacation rental bookings.  It’s an inconvenience this year, but next year the home will be all yours
  • Offer to pay the HOA transfer fee
  • If it’s a term that has been identified for either the seller, or buyer to pay, it’s up for negotiation
  • Just remember – don’t get so caught up in negotiations that you lose sight of what you want and what you can afford!

At what point are negotiations binding?

You will have a binding contract if the seller, upon receiving your written offer, signs an acceptance just as it stands, unconditionally. The offer becomes a firm contract as soon as the signed, unchanged offer is delivered to you or me, your agent.

If the seller counters and you can accept the sellers countered terms, and you accept the counter offer just as it stands, unconditionally, then the offer and counter offer become a firm and binding contract as soon as it is signed by you the buyer, and delivered to the seller, or the sellers’ agent.

If the offer is rejected, that’s that and the seller cannot change their mind and hold you to it.  The same goes for a counter offer from the seller, if you reject it, that’s that and you  cannot change your mind and hold the seller to it.

One common question, what happens if the deadline for response passes?  At that point the offer, or counter offer is dead.  We often have a response come back after the expiration deadline and at that time, the receiving party can accept it as if it had been received on time, reject it, or counter it.  The receiving party is under no obligation to respond, even if it is an acceptance, the decision is with the receiving party as to how to proceed.

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Fair Housing | Privacy Policy

Laura Allen | 530.414.1260

CalRE# 01473598 | Broker Associate

Coldwell Banker| CalRE# 01908304, Tahoe City, CA 96145

Copyright © 2023 | Laura Allen | CalRE# 01473598 | www.TahoeLauraRealEstate.com | 530-414-1260 | Laura@TahoeLaura.com | Coldwell Banker Realty | 475 N. Lake Blvd., Tahoe City, CA 96145 | Log in

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