The price is right in your range. You're ready to make an offer.
NOW WHAT?
As your agent will tell you, your initial offer should leave
room to negotiate, and it should be close enough to the
seller's price to be considered serious.
DETERMINE (with your agent):
Where you want to start(your initial offer)
Where you hope to end up after counter offers
CRAFTING THE INITIAL OFFER
Here are some factors to consider:
A buyer's vs. a seller's market
Prices of comparable homes in the area
Prices of other homes on the block
Condition of the property
Note upgrades made and work that is needed
Seller's reasons for selling: How motivated are they?
WRITING AN OFFER
Your offer includes all details of the proposed purchase:
Amount of down payment if any
Your financing; note that you have preapproval
Who is responsible for closing costs
Inspections that will be performed, and who pays
Any repairs seller will make
The timetable for the purchase; date of possession
Contingencies/cancel clauses that will protect buyer and seller
Seller discloses any known problems or defects
Buyer ask for guarantees on the condition of the property
at the time of sale
A closing date
COUNTER OFFERS
If your initial offer is rejected, you submit a counter offer.
Sometimes this process can go several rounds
It's important to follow your agent's guidance
Make sure all your counter offers are in WRITING
Know when to walk away and look for other property
Rely on your agent's counsel in this matter
OFFER ACCEPTED!
The offer is REAL when both the buyer and seller SIGN.
If either party still wants changes, it is NOT a deal yet.
A verbal agreement is NOT a binding offer.
When buyer and seller sign, you have a contract.
At this point, neither party can withdraw without a penalty.
The OUT is in the contingency clauses written in the offer.
