You've decided to buy a house. You've found a Realtor and chosen a lender. You've been pre-approved. You determined what your new home should look like, and now, after a period of exciting (and sometimes tedious) searching, you find yourself standing in a home that meets all of your "must haves", and it just feel like the one. Your Realtor asks "would you like to make an offer on this home?" and you know the answer is "YES!" Now what happens?
WRITE THE OFFER
The first thing to do is prepare your offer to buy the home. Here is another of those places your Realtor can add value to your transaction. The agent's experience can help you write up the terms you would like in such a way as to present a strong offer to the seller. Things like downpayment, earnest money, time to close... these are all variables that you have some control over, but that may need to be structured in such a way that they make you look like the strong buyer you've tried to be, with an attractive offer that gets both you and the seller what each of you want. Your exact terms will depend on your circumstances, which you and your agent can determine before hand.
DELIVER TO THE SELLER
Did you go over those papers you were given earlier in the process? If so, you will know what you would like each section of the contract to say. The exact paperwork and contract language varies from state to state. Here in Idaho our "Real Estate Purchase and Sale Agreement" runs 6 pages. It is a legal contract, and it spells out the seller, the buyer, the property, the terms of the agreement, and the times of the agreement. You will fill out this contract with the terms you would like to purchase the property under. Write your check for the "earnest money", your proof to the seller that you are serious. Sign all the pages, and give it all to your agent to deliver. Different areas have different customs for presenting offers, as do different times in the market cycle. Currently in our area, it is customary to fax the offer to the listing agent, who presents it to the seller. That is not always the case. In a seller's market there are times when you might consider presenting the offer directly to the sellers, if they will allow that. One way or another, once the offer is sent or presented, then you wait, usually 24 to 48 hours.
COUNTER OFFER
Getting a signed acceptance back on the first try is what everyone wants. More often than not, however, there is a counter-offer back. A point to understand is that a counter-offer is a new offer. The first offer has been technically refused, and a new one is offered in its place back to you. It might only be slightly different, or it might be unrecognizeable... but it is good, because it means you are working towards a "meeting of the minds", an agreement that you can both put your signatures to. And here is another place your Realtor will add value to the transaction.
NEGOTIATIONS
Working through offers and counter offers is called "negotiations". The object is to come to just the right set of terms that will get both sides what they want. Please don't think that the goal of negotiating is to take advantage of the other side, to grind them down, or to make a "killer deal". That might be business to some, but it isn't good faith business. Try to remember what the object is (both sides get what they want). Negotiate in good faith.
SIGNED AROUND
The goal, of course, is to get both sides to agree to the same set of terms, the same contract. When you get both sides to sign the same piece of paper, your Realtor will get to make that phonecall that excites everyone. "Mr and Mrs Dreamer, your offer was accepted! You're buying a house!"
Comments (2)Subscribe to CommentsComment