Here’s what you need to understand about making an offer.
When you have found the house that meets your needs and maybe even realizes your dreams, you’ll probably find yourself getting emotionally involved. Maybe you’ll imagine moving your furniture in, planting flowers, or hosting your first big holiday party. The trick is not to get too attached prematurely. There are a number of steps you must take before you’re holding the keys in your hand, and you need to think clearly and objectively at this point so that the offer you make is a realistic one.
Determining what you should offer. There are a number of factors that will affect the offer you make. You can rely on your Weichert Realtors PEYT Sales Associate to help you determine a home’s value relative to others in the area. Together, you’ll also consider the condition of the home, the demand for homes like it, how long it’s been on the market and, of course, how much you really want it.
Think twice before you make a “low ball,” offer. It will elicit a counteroffer from some sellers, but others may dismiss your bid outright. If you have chosen “Buyer Representation”, Your Sales Associate will be able to advise you on ways to make your offer more attractive: for instance, a mortgage credit approval and flexibility on the closing\settlement can ultimately close the sale.
Rest assured that your Weichert Realtors PEYT Sales Associate is a neighborhood specialist, well trained in the techniques of negotiation. After helping you think through the issues to determine the best offer for you to make at the time, your Sales Associate is well qualified to negotiate on your behalf with your best interests in mind.
Written offer with deposit. Your Sales Associate will strengthen your written offer by presenting it personally* and describing your case to the seller in person. To show that your intentions are serious, it is customary to submit the offer with a deposit. If your offer is accepted, your deposit is placed in a “escrow” account. If not, your deposit will be returned to you.
If the seller counteroffers, you may agree to that price and terms, or make your own counteroffer. Once you and the seller agree, both sides initial the final price and terms shown on the agreement of sale.
The final contract will specify the items in the home included or excluded in the sale, as well as any additional provisions either side wants to have as part of the contract. End dates for contingencies, such as for obtaining financing, are also filled in before the contract is signed.
Additional deposit. Depending upon the price of the home and the size of your down payment, the contract may specify a date when additional monies would be placed into the escrow account. At this time, the mortgage company or your attorney will order a title search and insurance.
Mortgage contingency. Unless you are an all-cash buyer, as part of your sales contract, you generally will agree to obtain financing within a specified period. This period may be extended with the seller’s agreement. If you are unable to secure financing, the contract becomes null and void.
If your contract includes additional terms such as Inspections and due diligence, you will have specific time frames which will need to be adhered to. Your sales associate will keep you on track for important dates within the contract.