Steps to Making an Offer
Your realtor will provide:
- Recent selling prices of similar homes in the area
- If the offer is rejected, a second or even third negotiation may take place. If the “minds do not meet” we will begin looking for another home.
- Ask questions about the home:
- How long has it been on the market?
- Why is the home being sold?
**Consider the home’s resale value. This is often the most important point to consider before making an offer.**
When Your Offer is Accepted:
- The buyer signs the “purchase contract,” which is a legal document and covers all elements of the future purchase such as price, total down payment, closing date, etc.
- The closing date is when the closing or settlement agreement is signed.
- The offer states which party (buyer or seller) will pay for which settlement costs and the type of loan applied for.
What the Offer Contains:
- Offering price
- Earnest money: part of the down payment to secure the initial agreement
- Definition of “earnest money” – the buyer is in earnest to buy.
- Contingencies: Special circumstances such as the date the sale must be completed, or the repairs the seller must make.
- Items included in the sale such as: Appliances, window treatments, rugs, flooring, or certain furnishings.
- Whether or not the Buyer desires a Home Warranty paid for by the Seller.
- Major Point to Remember: The purchase agreement is conditional. The buyer can cancel if the loan cannot be secured, or if the home has major problems which cannot be corrected before closing.