MAKE AN OFFER
Now that you’ve found the house, work with your agent to make an offer. Remember, the listing agent works for the seller; only the selling agent (buyer’s agent) has your best interest in mind.
When writing an offer contract, be sure to pay attention to all of the details.
Offer Price:
Your agent should do a market analysis that pulls data on recently sold comparable houses. The best comparisons will come from the same neighborhood.
If you are asking for the seller to pay some of the closing costs, remember that this cost plus the sales commission determines the net amount you are offering the seller for the house.
Work with your agent on your negotiation strategy. There are many things to consider, such as how badly you want this particular house, whether it is a buyer’s or seller’s market and an assessment of the seller’s motivation to get the property sold.
There isn’t one best strategy.
Be sure to document in writing everything you want included with the house, such as appliances, etc. Your agent should guide you through the contract step-by-step.
Contingencies:
- Home inspection.
- Mortgage.
- Final walk through (24 hours prior to closing).
Proposed closing date. Typically, this is 30-45 days from an accepted offer.
A good-faith deposit is required for the offer. This is typically between 1-10% of the purchase price of the house. The deposit is kept in escrow until closing and the money is applied to the purchase price of the house at closing. If the house does not close due to one of the contingency clauses, the buyer receives their money back. However, if the buyer decides not to close on the property, the seller may get the deposit money.
Attach your pre-approval letter to the offer.
