What's the best way to make an offer?

We advise buyers to submit offers via email with a financial snapshot (assets, liabilities, income) and a prequalification letter from a lender if they plan on financing (which indicates the amount to be financed). A more detailed financial disclosure form can be submitted if there is interest. Buyers should also indicate how they plan on using the property (ie for personal use as a primary residence, pied a terre, etc.) Finally buyers should include a rationale behind the offer and a link to comps that support the offer. The seller needs all of this information to properly assess the offer, and presenting it right it indicates a serious buyer, which should get a quick answer/counter.

Doug Perlson
RealDirect

I don't think the way to make an offer is any different when "considering todays [sic] real estate market" than any other time. I'm in agreement with Douglasternyc and another regular and reliable poster Ali (who is an agent like douglaster) who has given similar advice in the past if I recall correctly. Go in as strong as possible with an offer. The above advice helps you achieve that and to start productive negotiations.

FC, so glad you found something you like.

I'm not sure what there is to unpack behind "today's real estate market" -- are you in the starter 1-BR subniche, where there's a lot of inventory, or in the UWS 3-BR subniche, where it's tight?

However as general rules:

1) always in writing - email is fine

2) indicate major terms -- "For Apartment 3a, including chandeliers and window A/Cs, I'm offering ten bucks. This is an all-cash offer with an inspection contingency. I am looking for a Dec. 31 close." The point here is DON'T BE SLIPPERY, because that behavior will bite you back if the negotiations go to Round Two. If you need a contingency, or a set close date, or you expect to get window treatments -- say so.

3) Indicate your qualifications. There's a two-page REBNY form for this; if not using it, just sketch out your salary, asset, and major liabilities in a couple of sentences. If you're applying for a co-op, mention what makes you a good board candidate.

4) be friendly. I take a lot of heat on this board for my fairly easy-going style, but I find it pays off big in later rounds of negotiation. So be pleasant: Thank the seller/broker for his time. Mention how much you love the apartment.

I don't think there's a great deal of need to go into comps. The seller is not suddenly going to decide that her apartment is worth $800K instead of $1 mm just because you say so. Save that for the back-and-forth of later rounds.

Hope that helps. Keep us posted.

ali r.
DG Neary Realty

Doug,
excellent advice.
kylewest,
Prehaps when the market was grossly overheated offers were submitted for greater than ask and bidding wars transpired. I don't think today bidding wars comprimise the same % of sales. I am also a believer that the more productive homework done prior to a bid the better. Simple things like, is the owner alive, did the current owner move already, out grow the apartment, etc. Apartment conditions which might be considered wrt comps.

I would also think that some time frame on the offer might be indicated.

ali,
I'm not realy ready to make an offer on any property.
I got this idea from another thread and thought it might be an interesting discussion.

Well, I realize that if you're on the other side of the table from a listing broker, you have to take what they say with a grain of salt, but a good listing broker will guide you to what the seller wants to hear.

Let's take the case of an estate, for example. You seem to be assuming that since nobody is living in the property, it might be possible to get a little bit of a bargain by offering a quick, clean deal. That's true - IF the heirs get along and IF the paperwork is in place and IF the building is ready to deal with whatever needed renovation.

Otherwise, you could be in store for anything from a non-accepted offer (if one of the heirs is going to stall the sale for two years to see every conceivable bid) to an agonizingly slow close (which might, say, cost you if the co-op's not ready to go, and you end up losing your mortgage rate lock).

Listing broker's job is to help you see which scenario you're walking into, so you can strateqize accordingly.

ali r.
DG Neary Realty

I agree with everything in Ali's list EXCEPT the "mention how much you love the apartment". You want to seller to assume you are willing to walk if you cannot get the deal you want. If you feel the need to say something positive about the unit, temper it with something not so positive--ie: "Amazing views. Kitchen needs a full gut".

Bramstar, I think that most buyers will think that it's sweet that you love the apartment but if you're putting down Manhattan prices in this uncertain market you'd better love the apartment!