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First Time Home Buyers in South Lake Tahoe: Step Seven

November 24th, 2009 categories: First Time Home Buyers, For Buyers, For Sellers, Lake Tahoe Real Estate, South Lake Tahoe Statistics, South Lake Tahoe, CA

SoundbiteblogWriting the Offer

This is inspired by a colleague and friend of ours, Rich Jacobson , who owns the Kitsap County Real Estate Blog in Washington state. His work for the source of this series is superb, and with his graces we are retooling it for first time home buyers in our South Lake Tahoe real estate market.

This then is the seventh in a series of articles focused on helping 1st Time Home Buyers successfully buy a house in South Lake Tahoe. Each time, we’ll focus on key events, or steps if you will, in the South Lake Tahoe home buying process.

1. In the first of these, we talked about Mortgage Lenders and Loan Pre-Approval.
2. In the second article we talked about the first five of the top ten traits to look for in finding A Great Real Estate Agent ( Pt 1).
3. In the third article we discussed the second five of the top ten trails to look for in finding A Great Real Estate Agent (Pt 2).
4. In the fourth article we looked at the initial meeting with your agent and Exchanging Vows: The Buyer Agency Agreement.
5. In the fifth article we looked at How Much $$$ Does it Cost to Buy a House?
6. In the sixth article we provided Tips for Home Tourists.

Step Seven:  The Offer they Can’t Refuse

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After you have found the right home that is perfect for your needs, the next step is the offer. A good, reasonable offer is crucial to achieving home-buying success. Particularly for a first time home buyer in South Lake Tahoe, your Agent’s knowledge and expertise is your best counsel during this stage of the process.

Here are a few basic points when putting together your offer

Current market conditions. Since the last quarter of 2005, the South Lake Tahoe market has slowed significantly. For several years, it was been a Seller’s market, but not anymore.

In a slow market, there are more homes available, prices are lower, and Sellers are more motivated and willing to negotiate. Your Agent knows the dynamics of today’s market intimately, and will be able to explain the best strategies.

Days on market. How long has the house been on the market usually indicates buying strategy, but not always. Again, your Agent will know the differences (if not, call us). In today’s South Lake Tahoe market it takes an average of a little less than 6 months to sell a house. Generally, the longer a house has been on the market, the more willing the Seller is to negotiate.

Fair market value. Is the house worth what the seller is asking? Is the house priced properly according to current market value? Sometimes a house is listed at exactly that, and sometimes not. The key is to know the difference. Here again your Agent’s experience and market knowledge is your best guide. The numbers, and we prefer them in spreadsheets, will tell the tale.

Low price offers. Your Agent’s price analysis will show you clearly whether a house is overpriced or not.  If it is,the key to writing a lower offer is to do so without insulting the Seller. Your offer should be enough to attract the Seller’s attention, encourage reasonable consideration, and evoke a counter. Your Agent will recommend an appropriate offer that will accomplish these goals.
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Multiple bid situations. Even in today’s South Lake Tahoe market there are occasions where a home is priced so attractively that multiple offers appear instantly. You may find yourself in one of these situations. If so, you may have to pay more than list price to purchase the house.

Strengthening your position. You Agent will guide you to do everything you can to convey yourself as a strong, viable Buyer. Have a loan pre-approval letter from your lender that is specific to the property address.

If you know that this is the house for you, put down as much of an earnest money deposit as possible. Remember, this is one element that you control and it communicates the seriousness of your intent.

Your Agent can also draft a cover letter to accompany your offer that introduces you to the Sellers. This is one of those intangible things that helps make things more personal, and puts “flesh” on your offer.

mr-clean.jpgKeeping it clean. Try to make your offer as neat, simple, and straightforward as possible. Avoid using too many contingencies, handwritten changes or modifications to the standard forms.

Accomodating the Sellers. This is especially important in multiple bid situations. Prior to drafting an offer, a good agent will ask the Listing Agent if there are any aspects to the offer that might be in the Seller’s best interests. Some Sellers may want a quick closing, or an extended closing with a rent back. Drafting an offer that takes into account the Sellers needs and wishes will have a better chance of acceptance. 

Items conveyed with the property. Your Agent should have an MLS printout of the home that states which items (washer, dryer, refrigerator, etc.) are being conveyed along with the property. Make sure these items are included and specified in your offer.

Equipped with this information, and the expert counsel of a professional real estate agent, you’ll be better positioned to successfully achieve “Your 1st Time Home Buying Adventure!”

The first post in this series, Mortgage Lenders and Loan Pre-Approval  here.
The second in this series, Get a Great Agent (pt 1)  here.
The third in this series, Get a Great Agent (pt 2) here.
The fourth in this series, Exchanging Vows: The Buyer Agency Agreement here.
The fifth in this series, How Much $$$ Does it Cost to Buy a House here.
The sixth in this series, Tips for Home Tourists here.
In the next article in this series, we’ll look at Home Inspections here.

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This entry was posted on Tuesday, November 24th, 2009 at 12:07 pm and is filed under First Time Home Buyers, For Buyers, For Sellers, Lake Tahoe Real Estate, South Lake Tahoe Statistics, South Lake Tahoe, CA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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