Making An Offer On A Home
Making An Offer
Once you have found the home you wish to purchase, you will need to determine how much to offer for the home. It is important to remember that the more competition there is for the home, the higher the offer should be – sometimes even exceeding the asking price. Remember, BE REALISTIC. Make offers you want the other party to sign! We will provide you with current NEIGHBORHOOD STATISTICS to make sure you understand the market dynamics before making your offer. Please note that NEW CONSTRUCTION homes work differently.
To communicate your interest in purchasing a home, we will present the listing agent with a written offer. When the seller accepts an offer it becomes a legal contract. When you write an offer you should be prepared to pay an earnest money deposit (the average earnest money deposit is 1% of the purchase price). This is to guarantee your serious intention to purchase the property.
After we present your offer to the listing agent it will either be accepted, rejected, or the seller will make a counter offer. If the seller decides to make a counter offer then this when we negotiate terms of the contract, if necessary.
The step-by-step contract procedure for most home purchases is standard. The purchase agreement used is normally a standard document approved by our State Association of Realtors. However, most new home builders have their own (and lengthy) contracts to use for their transactions.
The purchase agreement or contract constitutes your offer to buy and, once accepted by the seller, becomes a valid, legal contract. For this reason, it is important to understand what is written on the contract offer.
Useful information that we will provide to help you make an intelligent offer:
Recent sales comparables
MLS history of the listing – how long has it been on the market?
How much the home was purchased for, when, and how much they have borrowed against it.
Whether it is a distressed sale or not.
Once all the terms have been agreed upon and the contract is signed by both parties it becomes a "ratified" contract (you have the home under contract and you can move forward towards closing)!
Read our Next Steps blog post to learn what's involved from getting the home under contract to closing the transaction.
Call/text 843-900-0155 to get started!