The Home Purchase Process - Step 4

Step 4: Making An Offer

Once you find the home you want, you need to make an offer for the house. Typically this is a very difficult and trying time since both parties have totally different goals. In most cases it is better to have a third party, such as your buyers agent (me), negotiate the offer. If you have any personal interaction with the homeowner, don't give out any information about your move, your current housing status, financial status or your feelings about their property - positive or negative. This could hurt you in future negotiations.

Some of the items that need to be addressed in an offer are:

• The proposed selling price (your offer).
• A legal description of the property
• Any concessions you desire the seller to make.
• Any financing contingencies (for example, subject to you being able to obtain a satisfactory mortgage. You can go as far as to state maximum interest rates, specific terms, etc.)
• Any home inspection contingencies (for example, subject to an acceptable whole house inspection report).
• A clear definition of precisely what is to be included in the sale. Don't simply assume that items such as porch swings, fireplace doors and refrigerators are included. Doing so usually causes some unpleasant surprises on moving day. If there is any question, be specific!
• The amount of earnest money (your deposit) that is being tendered with the offer.

I can save you time and money by making sure that your contract meets all the legal requirements according to local and national guidelines. I will be able to expertly advise you on how to create an offer that will have the best chance of being accepted. Also, I will ensure your financial position as the buyer by including any necessary contingencies which would protect you if a particular requirement is not met.

You, as the buyer, can accept the counteroffer, make another offer, or simply move on. If, however, the seller accepts the offer (and you are notified within 24hrs of its acceptance) then a legally binding contract has most likely been struck. There is not even the need for additional paperwork, the signed offer becomes the contract and a closing date is agreed upon.

>next step

Step 1: Defining What You Want
Step 2: Figuring Out What You Can Afford
Step 3: Shopping For Homes
Step 4: Making An Offer
Step 5: Inspection & Insurance
Step 6: The Final Closing