Home Buying Process November 10, 2020

You Found The House! Time to Make an Offer

Making an Offer, The Offer Process, Buying a Home

It’s time!  You’ve found the home that you can see yourself living in, and you are ready to send an offer to the sellers. What’s the best way to put together an offer that the seller will accept that will also ensure that you get a fair deal?

There’s lots of pieces to the puzzle, with the offer price being just one of them. Other considerations are closing date, inspections, down payment and financing, and contingencies. The good news is that your real estate agent can advise you on how to put all these pieces together in a way that will help your offer get accepted. Your Intero agent will draft the offer with you. The offer will include an offer price, how you will pay for it (cash or financing type), amount of earnest money, closing date, and contingencies for financing, appraisal, and inspections.

How Do We Determine Offer Price?

You’ll likely discuss the offer price thoroughly with your agent. The most recent sold data for the surrounding neighborhood and comparable homes will be particularly helpful. Together, you can look at how those homes compare to the one you are trying to buy. If you are in a multiple offer situation, however, you may be more inclined to structure the offer in a way that would cater to the seller’s needs, so they will choose your offer. If it’s more of a buyer’s market, you may be able to include concessions (like a closing cost credit) that will benefit you.

What About Our Financing?

You’ll also submit a lender pre-approval letter with your offer. If you are paying cash, you’ll provide proof of funds. Either way, this shows the seller that you are capable of paying for the home. Your offer will include an earnest money deposit, a percentage of the purchase price, as ‘consideration.’ That deposit will be applied to your side of the transaction when it settles. After you sign the offer, your agent will submit it to the seller’s agent, who will in turn present it to the sellers.

What Happens After We Submit the Offer?

Then, you wait. While it’s possible to place a response deadline in your offer, without it the contract probably only states that “time is of the essence.” Your agent will reach back out with an update of acceptance, rejection, or further negotiation if the seller countered your offer. When you and the seller have agreed to (and signed off on) all terms, the offer is considered ‘ratified,’ and you have a binding contract to purchase.

Want to talk through how this works? Contact us– we are happy to help!

Getting started in the home buying process can be exciting and frustrating at the same time. If it’s your first time buying a home, you may not be sure where to start! Don’t worry, though, we are going to explain everything about the home buying process, step by step. You can find all of the articles here, on our Navigating the Home Buying Process page.