Remax Louisville

RE/MAX Connections

118 Bauer Ave.
St. Matthews, KY 40207
Phone: (502) 899-7560
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Buying a Home in Lousville: Preparing the Offer

You will need the assistance of your agent to complete the contract to purchase. There are two main components of a purchase contract: the price of the property and the terms of the sale.

Your agent will be able to offer some guidance on what your offer will be. For example, your agent has the ability to look up comparable sales in the neighborhood to help you determine what is a fair market price.

That having been determined, you may want to make an offer for that price or something less than what appears to be fair market value. The seller's motivation is a big factor in whether they might accept something less than the fair market value. Sometimes making a very low offer is a turn-off to a seller, and this will work against a buyer in the negotiating process.

Your ability to purchase can help to determine the sale price if you are financing the purchase. At the point you are writing an offer, you should have already spoken with a lender and have been pre-qualified or pre-approved for a certain price. It's important to consider only the properties that are within your price range. In the Louisville area market, homes are selling for approximately 97% of their list price. Remember this number is just an average. Some very hot properties may actually sell for more than the asking price; while some overpriced homes or distressed sale properties may sell for considerably less.

The terms of the sale encompass all of the other components of the offer to purchase. These will include:

How the property is going to be paid for at closing. This may include bank financing, owner financing or cash at closing. The amount of a deposit check at the time the offer will be a credit to you at closing; a good rule of thumb is the deposit check should be for at least 1% of the purchase price. 		When are the closing and occupancy dates? Sometimes it's good to know the seller's situation when this aspect of the offer is being decided; if the seller has not yet found a home to purchase, it might be to the seller's benefit to push back the closing date. A lower offer may suddenly look more attractive if the buyer is able to offer this concession.

What stays with the property? All attached fixtures are considered part of the real estate and will stay. Some items that a buyer might request separately might include freestanding appliances, window treatments, area rugs or landscape ornaments. Remember that the more items you ask for, the weaker your offer looks in the eyes of the seller! Lenders do not look favorably upon too many personal items being requested in the purchase contract. Personal items of considerable value should be negotiated separately, outside the constraints of a purchase contract.

Is the offer being made subject to inspections? It is highly recommended to have inspections completed within a designated period of time from the acceptance date of your offer. Be sure to discuss the inspection process with your agent.

Are there any other special provisions that you might request? These may include asking the seller to pay for a home warranty or pay closing costs for you. Remember, the more requests you make of the seller, the weaker your offer will be in the eyes of the seller!

These are the main components of an offer to purchase. You will need an agent to guide you through this process. The purchase of a home is a rewarding and exciting event. Many times, purchasing a home ranks right up there with other big events in a person's life. With the proper expectations and guidance, it will be a pleasant experience for you!!!