The home buying process -
Step 5 – Write an offer to purchase
Buyers go through a whole range of emotions when it is time to write an offer to purchase a home. They are excited, nervous and anxious. A home is the single largest purchase that most people will make in their lifetime.
It is easiest to meet with your real estate agent at an office when writing an offer. The contract takes some time to go over and copies will need to be made.
Writing an offer to purchase is much more than filling in a price. In Indiana we have state purchase agreement contracts that we use. The real estate brokerages are required to have an office policy document for buyers to sign. The seller disclosure and lead paint forms are two other forms that may go with the offer to purchase.
The purchase agreement will determine the price, terms and conditions of the home purchase. Everything is negotiable but it needs to be in writing.
Your real estate agent should pull the solds for the area surrounding the subject home. The latest solds of similar properties will help you decide on the price you wish to offer. The assessment information and past listings should also be looked at for a property. Often times you’ve been looking at everything in a certain price range and area so you may already have an idea on what you wish to offer. This information should still be looked at to help confirm your thoughts.
Your lender letter of prequalification or preapproval will be needed along with an earnest money check. Yes, you will need your check book. These two items give the seller an idea of how solid an offer is. The seller wants to know they have a good buyer if they are taking their home off the market to accept your offer.
The real estate agent will go over the comps, past listings and assessment information with you. Next the contract and all other documents that pertain to the purchase will be discussed and filled out. Your real estate agent will submit the offer (purchase offer contract and all pertaining documents) to the listing agent who will go over the offer with the seller.
The seller can accept, reject or counter your offer. Your offer will have an expiration date and time for the seller response. Then the wait begins.