Making an Offer on a Lake Home!

You have been looking at a bunch of houses, now the time has come. You’ve found a home, and you’re ready to make your first offer. It is scary, but an experienced agent such as John Garrett can make it less scary and less stressful, and that is the true value of a great agent.

Here are some pointers to keep in mind as you throw your home-buying hat in the ring for the first time.

Be Informed!

You’ll need to know how long the home has been on the market, if there are other offers on the table currently, and how motivated the seller is to sell the property.

You can uncover a lot by learning about the seller. Find out why they’re selling and what their motivations are. Pull all that information together and then mesh it with comparable homes’ sales data.

Reviewing the sales comps

John Garrett will present to you the last six months of recent sales data to review and compare. These “comps” tell about the most recent market and what current buyers/sellers have agreed on for a sale price.

Look at the pending sales first and see if your agent can uncover some information about those transactions. You want to ask about the number of offers they received or a ballpark selling price. The pending sales represent the most up-to-date market statistics. John Garrett will be happy to give you his opinion of the home’s value if you are not sur what to offer.

Discuss terms

In addition to price, you will need to decide on terms. How long will you take for your inspections? Do you want to close quickly or take a longer time? Will you need an appraisal and loan contingency? How long should that be?  Dock permits?  Seawall permits?  Septic inspections?  I deal with the all everyday!

Give your lender a heads up

Ideally, you need a pre-approval letter with your offer; this will separate you from any other offers that come in that don’t have a pre-approval letter.   John can recommend lenders that specialize in the Lake of the Ozarks market.

These terms are critical, and are as important as the price itself. If the seller wants a quick close, and you can do it, give it to them. If you are competing with a cash offer, make your loan terms foolproof.

Remember, there will be always be other houses

Most of the buyers I work with do get the home they bid on.  But remember, it’s not the end of the world if you don’t. There will be other homes for sale at the Lake of the Ozarks.