Making an Offer
Deciding how much to offer for a home is vital. Of course, you want to get the property of your dreams at the lowest price possible. However, sometimes making an offer below, or even at the asking price, will not get your offer accepted. This is where your real estate agent will be invaluable on advising you on the price to offer for the home.
Sometimes a home is listed below market in hopes of getting multiple offers that will probably come in above asking price. Other times, a house has been on the market for a long time and your offer might be accepted even if it is below the asking price. Let your real estate agent guide you in this process. However, don’t get so caught up in getting the house that you wind up going over your comfort zone price.
Prepare a purchase agreement.
When you find a property on which you want to make an offer, you and your real estate agent prepare a Purchase Agreement and Deposit Receipt. Your real estate agent should help you with what contingencies to include in your purchase agreement. Examples of contingencies include:
- Financing
- Home Inspection
- Appraisal
- Clear title
The seller may respond to your offer in one of three ways: accept it, reject it, or make a counter offer. Once the seller agrees to your offer by signing, your purchase offer becomes the basis for the legally binding sales contract. In addition to the basic terms of the sale included in your offer to buy, certain contingencies are generally included in the contract. These are important since they are a conditions that must be met for the contract to take effect.
Once your offer is accepted, you go into escrow.