#5 Making an Offer
Now that you have found the home you would like to purchase, it's time to make an offer. Taking into account the recent sales of homes in that neighborhood which are similar in size, quality, conveniences, and amenities, what are you willing to pay for the home?
Make sure that you have everything down in written form... no verbal agreements. Present the seller with a written document detailing what needs to be done by both parties to execute the transaction. The contract should protect the best interests of all parties involved and should be comprehensive in nature. Once it is accepted by the seller, it may be too late to make any changes, so make sure review your offer thoroughly before submitting it. The contract, though not limited to this list, should include the following:
A legal description of the property
The offering price
The down payment
A list of fees and who will pay them
Amount of the deposit
Inspection rights and possible repair allowances
The method of conveying the title and who will handle the closing
A list of appliances and furnishings which will stay with the home
The settlement date
Any relevant contingencies
Remember that the legalities of this phase are very important. If you have any questions or concerns, they need to be addressed right away. After all, no one has ever said at their closing, "I wish I had asked fewer questions."
Your agent can save you time and money by making sure that your contract meets all the legal requirements according to local and national guidelines. Your agent will be able to expertly advise you on how to create an offer that will have the best chance of being accepted. Also, your agent will ensure your financial position as the buyer by including any necessary contingencies which would protect you if a particular requirement is not met.
10 Steps to Buying Your Home
1- Needs Analysis
2- Preapproval vs. Prequalification
3- Neighborhood Information
4- Home Search
5- Making an Offer
6- Negotiating to Buy
7- Vendor Coordination
8- Pre-Close Preparation