So you are ready to make an offer? Great! At this point we will create a Comparative Market Analysis on the home of your interest to determine the best offer price.
At this point we will create a Comparative Market Analysis on the home to determine the best offer price. We will then meet to begin reviewing the Purchase and Sales Agreement. This document includes information like the price offered, financing terms, earnest money deposit, inspection terms, and closing date.
The earnest money deposit is most often 1% of the purchase price, and can be delivered on the contract date, or up to a few days after. It is deposited into an escrow account until the closing date, at which point the money is applied to the your costs at closing.
This contract will likely also have contingencies based on the satisfaction of the appraisal, inspections, insurability, and financing. We will take our time to review each clause in detail.
Upon receipt of the initial offer, the seller may accept, counter, or reject the presented contract. This isn’t always about a higher offer price, but may be about specific terms. It is all dependent on the motivation of the seller, and we will be there every step of the way to make sure you are informed and that we are appropriately responsive to the contractual deadlines.
The best offer will have the most preferable price, terms, and closing timeline, but there are ways to give yourself an advantage. Things that tend to be prudent in strengthening your offer are:
- Working with local lenders
- Increasing your earnest money deposit
- Shortening contingency periods
- Being flexible with the closing date
Dealing with a rejected offer can be frustrating, but it is a great way to learn if our strategy needs to be re-examined.
It is important to note that negotiations may come into play again after the appraisal, inspection, and financing processes.