The Saint Paul Condo Blog

This is another question I get asked a lot.  When you find the condo or loft you want to buy, what do you do?  Can you just ask the seller if they will sell it at your price?

Most (if not all) sellers want to see an offer in writing. That is one way knowing if you are serious about buying.  They will also factor in your earnest money deposit and if you are approved by a reputable mortgage broker.

How do you make a strong offer?

Even in a buyers market, you want to write an offer that enables you to get the lowest price, while not offending the seller.  It can be a difficult task at times.  If you come in too low, you run the risk of offending the seller and possibly not negotiating to their lowest price out of spite.  As much as realtors coach buyers and sellers to leave their emotions out of the negotiating process, we are all still human.

When writing an offer, I have found it advantageous to try and negotiate your lowest possible price with out asking for any seller contributions (closing costs or discount points).  Most sellers when receiving a low offer will automatically kick that out of the process, or not go any lower because they feel they have to sell for below their listed price PLUS give the buyer money for closing costs.

How does the closing date affect the offer?

Typical offers have closing dates within 30-45 days of the time of the initial offer.  Being flexible with the closing date can sometimes be beneficial if the seller has yet to purchase a home.  The purchase agreement must state an actual date but that doesn’t stop you from adding an addendum saying you are OK to close in a 10 window, with two weeks notice.  Sometimes too quick of a closing can be detrimental to your offer, as can too long of a time.

What if the seller is a bank?

That does change things quite dramatically.  Banks have their own set of rules on the negotiating process and it usually takes weeks to come to a conclusion as to what the selling price will be.  Also, there are normally penalties if you can’t close when you say you are.  The penalty is generally between $50 to $100 a day.  What’s kind of funny about that, is the BANK is usually the one who can’t close on time, yet there is no penalty for them.

What do I do next?

For starters, call me.  I deal with many buyers in Downtown.  I’d be happy to sit down with you to talk about what you need to do to put a good offer together.