Ask a Realtor: Should I make an offer if I still have questions?
On real estate
Dear Joan: I am thinking of purchasing a property that has a lot of potential as a future good investment. I have been asking my Realtor for lots of important information about the specifics and financials pertinent to the property. The information is slow coming, and I am not sure why. My Realtor keeps encouraging me to go ahead and write up an offer on the property, but I am intent on getting more knowledge before even deciding what price to offer. What should I tell my Realtor to get him to work harder on getting me the information I feel I need?
— Information Seeker
Dear Information Seeker: I would tell your Realtor that he is advising you well. I have the same advice for all our clients that have decided they would like to own a large or small property: Make an offer. The standard Colorado Real Estate contract greatly protects the buyers, providing numerous dates and reasons that a buyer can get out of the contract and get their earnest money returned.
Your Realtor can ask for as many days as you want to do your investigations and still have your earnest money returned if you discover negative facts. Also, the listing Realtor is allowed to release information about the subject property to a bonafide buyer that they would never release to someone just “interested.”
The most important reason may be that when you finally decide to make an offer, the property may have just gone under contract. Now, you may think it has been on the market for a very very long time and no one will come in at just the time you decide to make a move, but we have seen it happen numerous times in our careers.
Sometimes the market and the pricing just finally start to make sense on a property that has languished on the market. And, sometimes all the attention that you give to the property at the town, county, on site, questioning experts in a small community, open up the eyes of others as to the potential for that real estate. And did you ever think that if you keep having your Realtor ask the listing Realtor questions, that if another buyer shows up to look at the property, the listing broker will probably say that someone else is very interested, but is trying to do their due diligence prior to submitting an offer.
What a bummer to do all your investigations and have someone else put the property under contract just days before you make your offer! Why would you put yourself in this situation, when for no cost, you could write an offer, know what price you actually can buy it for, all the time being able to back out and have all of your earnest money returned? The “inspection objection” and “due diligence” clauses are in all Colorado real estate contracts, you just need to use them. I hope you will give this serious thought so that you will not miss out on the potentially good investment you have found. All the best.
Joan Harned is an owner and broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years. Contact Harned with your real estate questions at firstname.lastname@example.org, 970-337-7777 or http://www.skiandteehomes.com.