Congratulations! You’ve searched high and low for the perfect home and you’ve finally found it. In all the excitement, you might find yourself wondering how to take the first steps toward making an offer. Considering this isn’t something most of us do every day, researching how to make an offer on a house is critical. Read on for some insights about negotiating an offer the seller can’t refuse.
This is a key moment in the process so it’s important to have a real estate agent that you can rely on for great advice. A reliable agent understands her market and understands the subtleties of a successful negotiation. Your agent will provide you with a list of comparable homes that have recently sold to help determine the real market value and thus an appropriate and fair suggested offer. The amount that you can offer for a home is going to be the most important factor in determining whether your offer is accepted.
The housing market in Hawaii is competitive, so you’ll need to be creative. You may want to consider some nontraditional methods for winning the seller’s acceptance, such as writing a personal letter explaining why this house is the home of your dreams. Most sellers are emotionally invested in the home they are parting with, so knowing they will be leaving it in the hands of someone who truly adores it as much as they do could put you at the front of the line.
Sellers have a lot to think about when considering offers, so if you are a buyer who is easy to work with, you’ll win bonus points. Don’t haggle too much over earnest money (the money you offer the seller in good faith prior to closing), try not to be stingy about the down payment, and show flexibility concerning a closing date.
In addition, negotiations will have to be made regarding provisions about who will pay for inspections, title surveys, insurance, and other such necessities. Be willing to make compromises and try to be responsive to the seller’s concerns and questions. The closing process can be exciting yet challenging, so keeping things as emotionally low-key as possible will help earn the seller’s trust.
When it’s time to make the official offer, be professional. If you are working with an agent, sit down together and craft a polished offer letter.
If possible, waive as many contingencies as you are comfortable with. Contingencies are required conditions that must be met before the sale closes, so if you are in a position to make these concessions you could gain some footing ahead of other buyers.
Most importantly, how you conduct yourself during the offer process can influence whether your offer is accepted, rejected, or counter-offered. Be professional and calm, remembering that a flawless real estate transaction is very rare. Hiccups are to be expected and being tactful and patient are always welcome qualities when working with a seller.
Living the Big Island Dream
Purchasing real estate in Hawaii is an investment in quality of life. Be a homebuyer who appreciates the value of professional negotiation, flexibility, and an honest and heartfelt offer letter, and you’ll be living the dream in no time.