Making an Offer
"What's involved in making an offer?"
When you have found the house that meets most of your needs and dreams, you'll probably find yourself getting emotionally involved. You may imagine moving your furniture in, planting flowers, and your first big holiday party. But try not to get too attached prematurely. There are a number of steps you must take before you're holding the keys in your hand, and you need to think clearly and objectively at this point so that the offer you make is a realistic one.
Determining what you should offer.
There are a number of factors that will affect the offer you make. Supply and demand, the condition of the home, how long the house has been on the market, and your personal circumstances with regard to how soon you need to close on a home all come into play when framing your offer.
You might also weigh in the demand for the home and how much you really want it. If you "low ball," some sellers will react with a counter offer; others might dismiss your offer outright. It's particularly advisable to go with your "best offer" if multiple bids are anticipated. Your Sales Associate will advise you on ways to make your offer more attractive: for instance, a mortgage credit approval and flexibility on the closing/settlement date can help make your offer stand out and ultimately close the sale.
Rest assured that your Plano Real Estate Sales Associate is a neighborhood specialist, well trained in the techniques and complex psychology of negotiation. After helping you think through the issues to determine the best offer for you to make at the time, your Sales Associate is well qualified to negotiate on your behalf with your best interests in mind.
Written offer with deposit.
Your Sales Associate will strengthen your written offer by presenting it in person. That way they can use their expertise in describing your case to the seller and negotiate in person on your behalf.
To show that your intentions are serious, it is customary to submit the offer with a deposit. If your offer is accepted, your deposit is placed in a trust account. If not, your deposit will be returned to you.
If the seller counter offers, you may agree to that price and terms, or make your own counter offer. Once you and the seller agree, both sides initial the final price and terms shown on the agreement of sale.
The final contract will specify the items in the home included or excluded in the sale, as well as any additional provisions either side wants to have as part of the contract. Dates for contingencies, such as obtaining financing, are also filled in before the contract is signed.
Additional deposit.
Depending upon the price of the home and the size of your down payment, the contract may specify a date when additional monies would be placed into the trust account. At this time, the mortgage company or your attorney will order a title search and insurance.
Mortgage contingency.
Unless you are an all-cash buyer, as part of your sales contract, you generally will agree to obtain financing within a specified period. This period may be extended with the seller's agreement. If you are unable to secure financing, the contract becomes null and void.
