Making an Offer

Congratulations! Now that we’ve found the perfect home for you we will sit down and write up a purchase contract. I will walk you through the document to make sure you everything is clear to you and help you fill in the details.

This is one of the most important steps in the process of buying your new home and many factors will influence your offer such as the condition of the house, current state of the market and comparable sales. In a buyer’s market the buyer will have more leverage against the seller and may be able to negotiate the price lower. In a seller’s market the seller may be less lenient for low offers and it is very common for buyers to submit offers over the asking price in order to increase their chances of securing the property.

Below is a brief checklist of the homebuying process:

Step 1: Prepare to make an offer


• Revisit the neighborhood at various times of day and night
• Talk with prospective neighbors to discuss what it’s like to live in the area
• Look at the home more critically to discover any overlooked flaws or attributes

Review:
• Market value of home
• Home’s condition
• Special circumstances

Step 2: Review pre-qualification

• Finalize the exact amount you can pay for a home.
• Seek advice from your real estate sales professional regarding comparable homes in the neighborhood and ask for any other relevant information.

Step 3: Make an offer

• Submit purchase and sale agreement to real estate agent. This document includes:

• Description of property
• Price offered
• Down payment
• Earnest money
• Financing (for example, subject to you being able to obtain a satisfactory mortgage. You can go as far as to state maximum interest rates, specific terms, etc.)
• Contingencies
• Closing date
• Occupancy date
• Length of time offer is valid
• Inspections (for example, subject to an acceptable whole house inspection report)
• Any other requirements based on advice from your real estate sales professional
• Submit earnest money to show seller you are serious about your offer. Check with your real estate sales professional regarding a customary amount of your “good-faith” payment. (No set amount/type is required.)

Step 4: Seller response

• Acceptance
• Counteroffer
• Rejection

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