The 8 Key Steps to Homeownership
Step 6 - Select, & Make an Offer > What Are Sellers Looking For?
What are Sellers looking for in an offer?
Sellers are most concerned about 3 things: how much, how long and how sure are they that you can fulfill on what you have said.
How Much: What is the purchase price that you have offered? Have you asked the seller to pay any other costs, for example, are you asking them to pay a portion of your closing costs? The Seller will take the purchase price minus any seller paid concessions to determine the net purchase price. From the net purchase price they will deduct their selling costs (typically between 8% to 9%) and then deduct what they owe on their mortgage to determine if your offer will work for them.
How Long: As part of your offer we will include a closing date- that is the date when you become the new owner. Typically, in this area that is about 30 to 45 days. Does that time frame work for them?
Will you fulfill: Sellers want to be assured that if they accept your offer and take their house off of the market that you will be able to do what you said you can do. The main concern for a seller here is: can you get the loan necessary to purchase their home. This is when a Pre-Approval Letter from your Lender is crucial. The letter will state that the Lender has reviewed all the necessary paperwork and pre-approved you for a loan amount of $... We will present this pre-Approval Letter to the Seller at the time we present your offer.