Okay... so we have completed the following steps so far:
We looked at homes, found the right one, and now it's time to WRITE THE OFFER! How exciting is that?
There are so many variables that go into writing a good offer. How long has the home been on the market? Is it priced well? Are there any other parties interested in it that are going to write offers? What condition is it in? Will it need any repairs or upgrades?
We could go on and on, but you get the picture.
We will run comparables on the home and see what the market says about where it's priced. If it's priced well and there are other parties interested AND it's the home for you, we need to write a strong offer.
If it's been on the market for three months, there are no other parties interested, and it's a bit over priced, we offer lower and see if we can get them to come down.
Once we decide the situation and agree on the offer to make, we will meet to sign the purchase agreement (and a bunch of other paperwork!) and then we'll send it on over to the listing agent. We also send over a copy of your earnest money check. This is "good faith" money that is deposited in an escrow account once we have an accepted offer. At closing it is credited to your down payment.
Here are a few tips when writing offers:
* Don't lowball. The days of getting homes for 50 cents on the dollar are LONG GONE. Throwing out lowball offers on well priced homes is insulting to the seller in today's market. Even if we offer low and eventually come to an agreement, the sellers are going to remember our lowball offer, and we should expect a rough ride all the way to closing.
Even foreclosures in Fort Wayne are selling for close to list price. Banks are getting smarter (can't believe we just said that!) and pricing the homes where they will sell.
* Don't take advice from your hairdresser, girlfriend that has never bought a home, parent that hasn't bought a home since 1958, or your brother in law that used to sell real estate in Vegas during the boom. Listen to your Realtor that know today's Fort Wayne real estate market.
Next Up: What To Do Once The Offer Is Accepted.