Making An Offer

OK... You have found the home you want...And you are ready to make an offer. Your real estate agent will prepare and explain to you an Offer To Purchase, called the Real Estate Purchase Contract And Receipt For Deposit. Once you make an offer, and the seller accepts it, you could be legally required to go through with the sale.

How much should you offer? This could depend on many factors. Some of the factors that may influence the amount you would offer are: How much do you have to spend. How badly do you want the house? How many other buyers are interested. How motivated you think the seller is. How much work might need to be done to the house. How the property compares with other comparable properties. Most homes, sell at a price that is within three to five percent of the asking price. This may vary depending on market conditions.

Your agent will present your offer to the seller or the seller's agent. If the seller is not satisfied with the terms or price you offer, they may make a counter-offer. If you receive a counter-offer, you have the option of accepting or rejecting it - or making another counter-offer. This is the negotiation process that leads to a final offer that both parties agree on.

Contingencies are conditions that must be satisfied or you will not be required to go through with the purchase after the offer is accepted.- For example, most buyers specify that their offer is contingent on their obtaining satisfactory mortgage financing. Without this contingency, buyers could be required to go through with the purchase even if they could not get a loan. This could result in the loss of your earnest money. Other common contingencies include: Conducting a favorable home inspection within a specified period of time, obtaining clear title to the property, selling an existing home within a specified period of time, requiring that the seller pays a portion of the buyer's closing costs, requiring the sellers to make certain repairs before closing or an appraised value of no less than the offered price. Depending on your situation, other contingencies may be appropriate. This is why it's important to have a competent real estate agent to advise you. However, keep in mind that too many contingencies may cause the seller to reject your offer for one that might not be as complicated. When deciding which contingencies to put in your offer, be realistic. Consider the market and make sure your terms and price are fair.

When you submit your offer, you should be prepared to make a deposit. This deposit is often referred to as "earnest money" and it is given as a show of good faith on your part and that you are sincere about your offer. If the sale goes through, the amount of earnest money you put down will be deducted from the amount you owe the seller at closing. If the seller rejects your offer, or the sale falls through because one of your contingencies is not satisfied, your earnest money should be returned.