The Offer - "Offer to Purchase".

Everyone that has bough a home has had to deal with "the Offer to Purchase". Its the very first document that you sign with an indication of what you are willing to purchase the seller's home for.
If you asked anyone, they might explain that they know exactly what the purpose of it is, but have you realized that there are some good strategies to get the purchase price going down your direction?

First of all, when someone makes an offer they have two figures already determined in their mind:
1. The "offer" &
2. The "Max" price I would be willing to pay. (This stays secretly silent in the back of your memory).

The following are some recommendations that I have read about, or come across with everything that I have read.

First of all, make a low ball offer. Do not feel like you are going to insult the seller, understand that this is a strategic move in order to further advance your interest and in the end perhaps getting a better deal in purchasing your home.

The seller should come back to you with a counter offer. Their counter offer is usually just slightly below listing price.

PAY SPECIAL ATTENTION:
Most people have the habit of meeting people half way in negotiations. For example, if a home is for sale at $100,000.00 and you offered $70,000.00 but the seller counters with $99,500.00, I would bet that you thought it would be best to offer $185,000.00....hence aim for middle ground...DO NOT FOLLOW THIS STRATEGY.

After the seller has countered....your next best offer should only be slightly above the previous offer....if you offered $70,000.00 offer $73,000 and not $85,000.00.

Remember that you can make an offer, and counter offer forever, until both of you come into an agreement of the perfect purchase price.

The reason for the second low ball offer???...psychologically the seller...has to cover some ground with will movement towards the center too.

Rather than you going up in price...the seller will have to walk further into the middle ground.

Between $70K & $100K, the middle is around $185K.

But if you next best offer is $71K, the seller may go down to $90K.

The middle ground is now $80,000.000.



Its takes guts to offer low prices...but there are sellers that may be willing to sell for less.

Selling a home is competitive and sellers know that if they aren't the person selling their home to you, it will be someone else, and they will just have to wait who knows how long before another serious offer comes their way. They may reason that it is best to lose $10,000.00 from a deal and want away from their responsibility than to continue with the expenses of owning a home.


Use the above strategy only if you are 100% serious about buying.
You may save yourself a few thousand dollars in the negotiations with this strategy with the "offer to purchase".

Use your savings to cover your closing costs & to donate to my purchase of my own home.

If you found this information useful, please donate to my "new computer fund".

Thanks!!