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It's Time To Make An Offer...Now What?

By
Real Estate Agent with Coldwell Banker Pryor Realty, Inc.

You've finally found the home of your dreams and you are ready to make offer. At this point, you and your agent will discuss the details of the offer that you will make.  Make sure that you are serious about buying before you commit to making an offer.

I've noticed that new buyers get frustrated with the negotiation process because they are not sure about how the process works.  Once your offer is sent to the seller, the seller usually has 3 choices.  The seller can accept your offer as it written, reject your offer or decide to make a counter-offer.  The counter- offer process is where most buyers and sellers loose patience.  The counter-offer process can be time consuming.  You may go back and forth with several counter-offers before a decision is made.  Try not to get frustrated because this is quite common.  And please don't take it personal.

If you are searching for a home in a hot market, be aware that you may have to make an offer above asking price in order to purchase the home.  Also, in a hot market you may run into situations where there is more than one buyer making an offer on the same home.  In this instance, you may have to make an offer above asking price in order to win the bid. 

Be aware that when you make an offer, it is always a good idea to make an earnest money deposit.  Earnest money is a show of good faith to the seller that you are serious and that you intend to purchase the home.  Buyers should discuss with their real estate agent, how much earnest money should be deposited.

Finally, once you and the seller agree on terms, you will have a binding agreement date.  This means that your offer has become a contract and you are legally obligated to purchase the home. The binding agreement date is when the clock starts ticking for any deadlines addressed in the contract.  Make sure that you keep up with these deadlines because time is of the essence. And if you miss a deadline, it could mean defaulting on the contract and the loss of earnest money.

Making an offer can be an exciting time, if you keep in  mind that there is some give and take in the negotiation process.

1) Be flexible: Never say take it or leave it.
2) Don't allow your emotions to get in the way of you negotiating the best deal.  Try to keep pride, anger, fear and emotions in check.
3)Get pre-approved so that your bargaining position is stronger.
4)Don't insult the seller or the sellers agent.  Once you've insulted the seller or their agent, it is a great way to get any future offers rejected.  Once the relationship is damaged, it is going to be an uphill battle during the negotiation process.

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