Ready to Make an Offer?
You’ve found a house you love, and you are ready to make an offer. What now? First, let’s decide how much you are going to offer to pay for the house. I will research other properties that have sold in the area to determine the Current Market Value of the house and use it as the basis for your offer. But your offer will include more than just the purchase price. It will also include the amount of money you will put down for the Due Diligence Fee and Earnest Money Deposit, as well as any items that you may want the seller to include in the sale price, such as washer, dryer, or refrigerator. It may also include a provision for the seller to include a Home Warranty; a request that the Seller pay a portion of your closing costs; the Due Diligence and closing dates, and a host of other terms that will all be considered by the Seller in their evaluation of your offer.
The Seller’s Response & Negotiations
In most cases, the Seller will respond to your offer with a counter-offer. Some or all of the terms and conditions may be modified in the counter-offer, or perhaps only one change will be requested. Regardless, a counter-offer means that the Seller has rejected your offer and a new offer is now on the table. The ball is now in your court: You may either accept the counter-offer, or respond with changes of your own. During this period of negotiation, all communications take place between the Listing (Seller’s) Agent and the Buyer’s Agent.
An Agreement is Reached
Once we complete negotiations and we reach a meeting of the minds on all the terms and conditions, the contract document is then signed by both parties. It’s now time to write checks for the Due Diligence Fee and the Earnest Money Deposit.