How much should I offer for a property?
Professionalism is key when making an offer for a property. You must take into account the analysis of comparables that your real estate agent will do, where they will present you with the most recent sales in the area of properties similar to the one you want to buy. You should also look at additional data such as the condition of the home, improvements made to the property, current market conditions, new construction in the area, and the seller’s circumstances.
This analysis will help you establish a “fair” price for the property. Keep in mind that the seller may not accept your first offer, but if you come to the table prepared with solid data to support your offer, you are more likely to get closer to your ideal price. Professionalism is very important in real estate transactions, so make sure you give your best from the beginning.
The offer is then prepared with a purchase-sale contract. In Florida this is done with a formal and standard contract in which the specific requirements and terms of the buyer and seller are presented.
The purchase offer is made with a good faith deposit, which is usually 5% to 10% of the purchase price of the property. This deposit is usually made no later than the third day after the buyer and seller have signed the offer. The deposit is placed in an escrow account with a real estate attorney or title company, who may be the attorney involved in the transaction or a third party.
The purpose of the deposit is to show that the buyer is serious about purchasing the property and to provide some protection to the seller if the deal does not go through. If the transaction goes through, the deposit will be applied to the purchase price of the property.
It is important that you take into account that the seller can reject his offer, even if you have offered the full price, and sellers are not required to give an explanation as to why they rejected your offer.