Now that you’ve found your dream home, it’s time to make an offer (The CONTRACT.) I will help you determine the offer price by reviewing recent sales of homes that are similar in size, quality, and amenities. Also, I will advise you on how to create an offer that will have the best chance of being accepted. The contract will meet all local and national legal requirements will include, the following: Offer price, Down payment, Financial arrangements, List of fees and who will pay them, Amount of the deposit, Inspection rights and possible repair allowances, Appliances and furnishings that will stay with the property, Settlement date, and Contingencies.
After making an offer on a property the seller will look at it and will make a decision. (Depending on what was written in the purchase offer, this typically happens within 3 days.)This decision would be based on how much the seller agrees to the terms of your offer including the price, closing time, your financing, your qualification as a buyer, contingencies etc.
Three things will happen after an offer is made:
1. The seller accepts your offer as is - you begin to sign and initial all paper work and to get a ratified contract. You can now move forward into your inspections and due dilligence timeframes.
2. The seller counters your offer with specific terms - seller may want more money or they want to adjust something else (ex: they will accept less money if they can keep the appliances). if you get countered, then its time to relook and either agree to the counter terms or recounter with your terms modified slightly.
3. The seller rejects your offer (which can be done in writing or simply by not replying) - If the submitted offer is too low or has unreasonable terms from the seller’s perspective, then likely will get a rejection and you may want to move on as it likely indicates both parties have too large of a gap in value prceptions.
Once a contract has been signed and delivered by both parties a binding agreement has been formed and the DUE DILIGENCE PERIOD BEGINS.