You finally found it, the home of your dreams...or perhaps the first home to the home of your dreams...Nevertheless, you found a place to call home so let's talk about what the next step is before you can call it your own.

Negotiate a contract. The next step is to write up an offer, also known as a contract. Your Realtor should go over every detail with you but be sure to review it carefully so that it states your terms exactly; how much you want to offer, and any applicable contingencies such as the ability to obtain financing, and satisfaction of a Home Inspection.  If you have any questions about the contract please, please, please ask! 

Sometimes an offer is accepted just as received.  Sometimes the offer is rejected.  However, in many cases there will be a counter offer from the seller and negotiation will take place so that both parties are satisfied with the terms.  Typical counter offers include modifications of the purchase price, closing date, possession date, and/or inclusions, although any term(s) of the contract can be countered.

Generally, you are in a stronger bargaining position if you have already been pre-approved for a mortgage, are not selling a house at the same time, and have not loaded your offer with contingencies.  Your offer needs to be accompanied by earnest money which often is necessary for the contract to be legally binding.  It also shows your sincerity in wanting to purchase the seller's home. 

The amount of the earnest money is something you should discuss with your Realtor.  At times the seller may request a larger earnest money deposit than you initially provide.  There is no risk of losing your earnest money provided you do not default on the terms of the contract.  The earnest money will be credited to you at closing or returned to you if the contract is terminated according with its terms. 

You will also need to provide a letter from your lender indicating your qualification to purchase the home. 

Once you and the seller reach an agreement and sign an offer reflecting that agreement, you have a legally binding contract.  At this point there are additional steps necessary to ensure a smooth and successful closing; order Title Insurance, hire a Professional Home Inspector, and order an Appraisal.  Your Realtor and Lender will work together to make sure Title Insurance and an Appraisal are ordered.  If you need help finding a Home Inspector your Realtor can provide you with the names and numbers of qualified professionals.

Stay tuned for more information on what happens once you have a negotiated Purchase and Sale Agreement on the home of your dreams!

Joddie Roberts,
Your Spokane Realtor
Exit Real Estate North
8524 N. Wall
Spokane, WA  99208

509.844.7344
www.spokaneagent.net

...serving REAL needs with REAL knowledge...