Episode 53: Making an Offer — Negotiation and Contracts

You've found the property. Now it's time to make an offer. Today we're covering the negotiation process and what goes in the contract.

Should I Put in Multiple Offers on Different Properties?

David doesn't recommend it. In Belize, the real estate community is small. Agents talk. If you're putting in offers on five properties, word gets around. You develop a reputation as someone who's not serious.

Focus on one property at a time. If genuinely torn between two, tell your agent.

The Offer Process:

1. Decide on your offer: Consider asking price vs. market value, days on market, seller motivation, comparable sales, property condition
2. Submit a written offer: Property ID, price, contingencies, terms, closing date, deposit, expiration
3. Seller responds: Accept, reject, or counter
4. Negotiate: Counter offers go back and forth
5. Reach agreement: Both sides agree on all terms

How Much Below Asking Price?

No magic formula — it depends:

• Properties priced well: 5-10% below might be reasonable
• Overpriced or sitting long: 15-40% isn't unusual
• Multiple interested buyers: May need to offer at or above asking

What Should Be in the Contract:

1. Parties: Full legal names exactly as on title and passports
2. Property description: Legal description, address, parcel number
3. Purchase price: Amount and currency (usually USD)
4. Deposit: Amount (typically 10%), when due, who holds it, refund conditions
5. Closing date: Usually 30-90 days from signing
6. Contingencies: Due diligence period, clear title, survey approval, financing, inventory, walk-through inspection
7. What's included/excluded: Furniture, appliances, golf cart, boat — spell it out
8. Prorations: Taxes, utilities, HOA fees
9. Closing costs: Who pays what
10. Default provisions: What happens if someone doesn't perform

Inventory Lesson Learned:

David sold a property listed with another firm. Did inventory: two TVs, four beds, three mattresses. At walk-through, the beds had no mattresses — they were air mattresses. He didn't sit on them to check. Now he does detailed inventory, room by room.

Myth of the Week:

"I can always back out. I'll just lose my deposit."

Not necessarily. If you have proper contingencies and exit within those terms, yes. But if you change your mind after the contingency period, the seller may keep your deposit AND potentially sue for damages.

Negotiation Tips:

• Don't lowball insultingly — stay reasonable
• Don't negotiate against yourself — make an offer and wait
• Know your walkaway point before you start
• Focus on what matters to the seller
• Keep emotions in check — this is business
• Trust your agent

Connect:

📧 [email protected]
🏠 RE/MAX 1st Choice Belize]]>