Making an offer
What to offer
We can help you find your perfect home, but only you can decide how much you are willing to offer for it. Ask us about the selling prices and marketing time of other houses in the area.
Once you have determined the amount you are willing to spend, we will help you prepare a written offer. In most transactions you will offer to deposit earnest money with the escrow agent, showing your sincerity in making a reasonable offer and abiding by the terms of the written contract.
Contract forms
Your REALTOR® will help you prepare an offer using standard forms. The offer, if accepted, will become a binding contract. This document is the most important paper you will sign because it lays out all the terms of the transaction. It contains:
Before signing the contract, take precautions to protect yourself against unseen defects in the home. An inspection by a qualified inspector can provide you with unbiased opinions about the condition of the foundation, mechanical systems, plumbing systems, appliances, etc. If you can, accompany the inspector at the time the inspection is conducted.
It's also a good idea to get a termite and other wood-destroying insect inspection.
You may also want to have your REALTOR® request that the seller furnish you with a one-year residential service contract as part of the deal. This is common practice with the purchase of existing homes (after the first year, you'll have the option of renewing coverage at your expense) and ensures that certain items will be repaired by the company if they fail to function after you move in. If you buy a new home, the builder may offer a warranty as well. Whether you get a residential service contract or receive any other warranty, find out how claims will be processed and how any necessary repairs will be made.
Seller's options
The REALTOR® working with you will present the contract to the seller's agent or seller. The seller has three options: accept, reject or make a counteroffer--a rejection of the offer with a simultaneous offer from the seller to the buyer. If the seller makes a counteroffer, you then have the same three options. This process goes on until a suitable price is agreed upon by both parties.
Binding contract
Once you and the seller agree to the written terms and both of you sign, the document becomes a binding contract. Be sure that you pay close attention the terms. Otherwise, you may waive some contractual rights.
The contract may also set out other contingencies that have to be satisfied, so read the contract carefully and comply with its requirements.
If repairs are required, the contract will specify who will bear the cost of the repairs, who will arrange for the repairs, and when the repairs must be made. Before you close, be sure that the condition of the property meets the required condition specified in the contract.
We can help you find your perfect home, but only you can decide how much you are willing to offer for it. Ask us about the selling prices and marketing time of other houses in the area.
Once you have determined the amount you are willing to spend, we will help you prepare a written offer. In most transactions you will offer to deposit earnest money with the escrow agent, showing your sincerity in making a reasonable offer and abiding by the terms of the written contract.
Contract forms
Your REALTOR® will help you prepare an offer using standard forms. The offer, if accepted, will become a binding contract. This document is the most important paper you will sign because it lays out all the terms of the transaction. It contains:
- a legal description of the property,
- any property that will be transferred with the home, (blinds, curtains, fireplace screens, etc.)
- the price
- financing conditions and contingencies
- amount of earnest money deposit
- name of the escrow agent and title company
- proration of insurance, taxes, and interest
- fees to be paid and who pays for which
- rights to inspect the property and for repairs to be made
- dates of closing and possession
- what happens if either party defaults on the contract
Before signing the contract, take precautions to protect yourself against unseen defects in the home. An inspection by a qualified inspector can provide you with unbiased opinions about the condition of the foundation, mechanical systems, plumbing systems, appliances, etc. If you can, accompany the inspector at the time the inspection is conducted.
It's also a good idea to get a termite and other wood-destroying insect inspection.
You may also want to have your REALTOR® request that the seller furnish you with a one-year residential service contract as part of the deal. This is common practice with the purchase of existing homes (after the first year, you'll have the option of renewing coverage at your expense) and ensures that certain items will be repaired by the company if they fail to function after you move in. If you buy a new home, the builder may offer a warranty as well. Whether you get a residential service contract or receive any other warranty, find out how claims will be processed and how any necessary repairs will be made.
Seller's options
The REALTOR® working with you will present the contract to the seller's agent or seller. The seller has three options: accept, reject or make a counteroffer--a rejection of the offer with a simultaneous offer from the seller to the buyer. If the seller makes a counteroffer, you then have the same three options. This process goes on until a suitable price is agreed upon by both parties.
Binding contract
Once you and the seller agree to the written terms and both of you sign, the document becomes a binding contract. Be sure that you pay close attention the terms. Otherwise, you may waive some contractual rights.
The contract may also set out other contingencies that have to be satisfied, so read the contract carefully and comply with its requirements.
If repairs are required, the contract will specify who will bear the cost of the repairs, who will arrange for the repairs, and when the repairs must be made. Before you close, be sure that the condition of the property meets the required condition specified in the contract.
