HOW DO I MAKE AN OFFER
How do I make an offer?
Let your agent know you are ready to write an “offer to purchase”, a written document that declares how much you will pay for the house provided that certain conditions are met.
Your offer should have a time limit for the sellers to accept, reject it, or make a counter-offer. If a counter-offer is made, you’ll have some time to respond. Often, several offers go back and forth until an offer is accepted or one party decides to end negotiations.
How much should my initial offer be?
There is really no rule to use in calculating a realistic offer. Naturally, the buyer wants the best value and the seller wants the best price, but negotiations can be influenced by many factors, such as a seller who may be changing jobs and wants to sell quickly, or a buyer who really wants a specific home.
After you have looked at the home’s features, asked questions, checked comparables, and talked about it with your agent, you should have a good idea of what the home’s value is in the current market. Consider what you can afford, and make an offer that you consider to be fair.
Most buyers and sellers negotiate on price, with both sides “giving” a little until both agree.
Is there any way I can protect myself against emergency repair bills in my new Home?
Yes, home warranties offer you protection against many potentially costly problems not covered by your homeowner’s insurance policy. They have become increasingly popular in recent years and for good reason. The coverage can save you thousands in the event of a major mechanical breakdown at a time when your cash reserves have been depleted by your down payment and moving expenses. For more about home warranties, give us a call.
What is “Earnest Money” and how much do I need?
When you sign an offer to purchase, your agent will ask you for earnest money. It is money that shows you are serious about wanting to buy. Usually, you will be asked to write a check for 1% to 10% of the sale price. This money will be held in a special escrow account. If your offer is accepted, your earnest money will be included as part of your down payment. If your offer is not accepted, you will get back all of your earnest money, but keep in mind if you back out, you may forfeit the full amount.