You Find A House You Like: Now The Offer
You Find A House You Like: Now The Offer
You Find A House You Like: Now The Offer. After you been searching for a house you like and find the perfect house, now it is time to make an offer on the house. Making a compelling strong offer is very important. After you been searching for a while for a home you liked, now you find the perfect home, now what to do? What is next? The Offer. It is important to have a strong compelling offer. The offer will make the difference between getting the house you like or not, especially in a seller’s market. Seller’s market is when there is limited inventory then there is demand, which makes it harder for home buyers to get the offer through and in most cases, there are multiple offers in homes. Here we will discuss how offers work and how to make a strong offer.
Your Agent: an experienced agent will draft strong compelling offer.
You And Your Agent: will discuss the final details of the offer and the agent sends the offer to the seller.
The Seller May Accept the offer: if it is what they want, and you showing have everything in order to show that you are serious and when seller accept the offer the sale will most likely to go through.
The Seller May Decline The Offer: if you don’t have your finance in order, or your offer lack serious elements, the seller may decline the offer in fear of the sale wouldn’t go through due to factors such as finance, or any other factor. The seller wouldn’t want to miss any opportunity that may arise while having the process locked in uncertain scenario. So, the seller may decline the offer right away, and don’t send counter offer.
The Seller May Send Counter Offer: If the seller agreed to some of the terms you send in the original offer but doesn’t agree to other terms, they would send a counter offer and if you agree to the terms the seller send, then the process would move forward to next steps. There is no obligation to accept counter offer unless you are satisfied with the terms, otherwise you can walk away and discontinue negotiation at any point of this process.
Purchase Agreement: after both(you and the seller) agreed on the terms, now you will sign the purchase agreement. This is not a purchase contract, however, it is contract that you signed and agreed to purchase the property but on some conditions, or contingency such as:
Inspections: after the house inspection some issues may arise, and you may want to ask the seller to repair, upgrade, or reduce the price based on the inspection. Seller may agree on repair, or reducing the price, or may not. It is all based on individual sellers, and there is no one size fits all when it comes to home buying and selling. So, you could walk away if you don’t agree with the seller at this point.
Mortgage: Even though you might be approved for home loan, the lender will consistently checking for any changes that may stop lender from funding at the last minute. The changes could happen during the process of writing the offer and the closing, could be major loan other then the home loan, big purchase on credit or store card such as furniture or appliances, etc. Additionally, any affect in your credit score, down payment, and so on. If any of that happened you must add this in the contingency, so you would be able to walk away with no legal ramification, in case of any emergency.
The Price: A lot should be considered when making an offer on a house such as, the price, the house condition, market condition. Keep in mind that the lender will not fund the house unless the appraisal matches the home value. That is why it is so important to get an experienced agent to help you navigate the process.
Escrow And Ernest Money: You need to decide how much money you will put down in escrow, or Ernest money. In some cases, if the seller has Two offers, and your has bigger Ernest money amount, it could be the deciding factor of accepting your offer, because that shows you are serious about buying their home, and mean business. That money will be deducted from the sale price in the time of closing, but you would lose that money should you back out of the deal due to any factor is not stated in the contract. For example, say you wore moving because you had a job offer, and during that time the job offer was withdrawn, now things changed and you don’t need to move to that area anymore, or you have cold feet, or find a house that you may think is a better fit, all the changes that outside the contract will cause you to lose the Ernest money. That is why we recommend that you find the right agent to help you through the entire process and prevent any money lose, or legal mishap.
Final Words: A strong compelling offer can make the difference between you getting the house you always wanted or not. A strong offer shows the seller that you are serious about buying their house and putting money down in escrow as Ernest money will show that you have good intention. There is no one size fits all when it comes to negotiations, while buying or selling a home. Every real estate transaction have unique situations, and different circumstances may affect an outcome and changes the result. Moreover, the seller circumstances may change as well and they change their mind for one reason or another. You have the right to legal action and force them to sell the house. That being said, that is very rare, and most people enter into contracts with good intentions, and in a very rare situations the buyer took legal action to force the sale through. Again, there are rights, and contracts, and agreements, and every situation is unique and different when it comes to real estate. Good luck with your house hunting.