The Offer Process with Realtor Josh Taylor
Posted by Josh Taylor on Monday, January 30th, 2017 at 6:00pm.
Writing an offer is exciting and the first step to buying your new home. When you have reached this point in the process, the homework has all been completed, and it's time to get down to business. Start with a comprehensive data analysis of sold comparable properties. Base your offer on real comparable data. We know what is available now and this is the one.. What will you need to make the offer?
- Financing or Proof of Funds - Make sure everything is in line with how you will pay for the property and you have the funds accessible or a preapproval letter from a lender.
- Be Prepared to Negotiate - My job is to get you the best deal as your buyer's agent. This means they won't always take the first offer. Every situation is different and we will calculate the appropriate action for each circumstance.
- You Will Need Earnest Money- Earnest money is a deposit on the purchase normally held in an escrow account. This deposit is negotiable but an offer is generally considered stronger with a larger earnest money deposit. These funds go directly toward the successful purchase of the property but also protect the seller against default of the contract. A typical earnest money deposit on a home in the TriCities TN VA area is 1-3% of the purchase price (this can vary).
- Consider Contingencies in the Offer- There are multiple types of contingencies that can be included in an offer. A contingency is where an action is required in order for the offer to be valid. Some common contingencies on purchase contracts are home inspection, financing, appraisal, and sale of current home. In short, if the home doesn't meet the requirement of the contingency, the buyer is not obligated to make the purchase. In general, an offer with less contingencies is considered stronger. *State laws vary on this matter please consult a local professional in your area.
- All Real Estate Offers are in Writing - We will define all the conditions of the contract in writing. Items such as Names of buyer's and sellers, legal description of the property, type of financing or cash purchase, amount of earnest money, type of inspections to be performed, acceptance of seller's disclosures, date of closing, time limit on the offer, and many more. We will set a time and date for the offer to expire. The seller will have to respond by the expiration time or the offer will be null and void.
- Accepted, Countered, Rejected - Well these are in order of the way we want it to go.. An Accepted offer makes an executed contract once we are notified of our accepted offer. It's time to get excited, you are buying a house. A counter offfer means the seller does not agree to all the terms of the contract. Instead, they counter you with an offer of their own. This can be many things but most times it is about price. That you can Accept, Counter or Reject. A rejection is never fun.. Time to rethink your offer.
- Woohoo! Offer Accepted.. The fun is just beginning! You have an executed contract and you can get the rest of the process started. It's on to inspections, appraisals, title search, and closing!
Call, Text, or Email anytime with questions... I am happy to help 423.366.2353