6 to Buying a Home: I Want to Make An Offer On A Home I Love
Fabulous! You’ve found the perfect home and want to
put in an offer. In today’s market we need to put your offer in asap;
ideally within a few hours. Before we can put an offer in on a home, there
are things we will need:
Full legal name: The full legal name of anyone who will
be on the contract as well as their phone number and email address.
price do you want to offer for the home? We will have a discussion about
the listing and the comps in the area to determine a fair offer for the home.
walk away price: Don’t
expect to pay your initial offer price as it’s rare for a seller to accept your
initial offer without some negotiating back and forth. That’s why it’s
called an initial offer. In addition to deciding what offer you want to
put in to start, you need to decide now how much you’re willing to pay for this
property and what your walk away price is before negotiations get started.
closing takes place 45-60 days from contract acceptance. Sometimes
you can ask for a longer closing date depending on the seller’s needs, but we
wouldn’t expect it. Therefore, if you want to move around July 1, plan on
putting in offers at the beginning of May. If you’re paying 100% cash you
can often close faster than 30 days, but 45 days is usually the required
minimum if you are getting a mortgage.
much earnest money are you comfortable putting down on this property?
Typically, this will be $1000 – $2500 depending on the property. This is due once the contract is signed by
both parties, but we will send a copy of the check with the offer to purchase
to show good faith to the seller. The
earnest money is part of your down payment. Therefore, if you’re planning
to put $10,000 down for a down payment and you’re paying $2,000 in earnest
money then at closing you would owe an additional $8,000 for the remainder of
the down payment.
Option money: Option
money is paid directly to the seller, and “buys” you a specific number of days
to thoroughly check out a property and have a home inspection done before you
become contractually obligated to proceed with the purchase. If you have a change of heart or discover a
huge problem with the home, you may cancel the contract during the option
period. The number of days can vary from
5-10, but the customary amount is $10/day for every day of the option.
the contract, I need to know how much you’re going to put down for your down
payment. Your lender will be able to
help provide this information.
cost credits: Do
you want to ask for any credits for closing costs which would go towards the
amount of closing cost fees you have to pay for on top of your down payment?
you want to ask the seller to provide a home warranty on the property?
Contingencies: Any other contingencies we need to be
aware of? Do you need to sell your current home before we can buy this home?
Once we’ve talked through the above and we have
reached an agreement, we can either meet in person or I will forward you the
contract and have you sign it via a program called DocuSign. We’ll then submit it to the seller’s
agent. While negotiations sometimes go quickly, be prepared that it could
take 24 – 72 hours to negotiate the purchase price if the seller is out of
town, wants to sleep on the offer for a night, if we’re dealing with a bank,
etc. Every seller is different and some people can make decisions quickly
whereas others need time to think things through.
Patience is now the name of the game once an offer
has been submitted!