Making an Offer on a Home

Published: January 1, 2019
Author: Zachary Reed

A Video Walk-Through | The Complete Overview of Making an Offer

Making an Offer on a Home

Before we put the offer together we will discuss what price we would like to offer on the house. In some instances, we will need to verify existing home sale prices in the area. Once we know what amount we are offering, we will ask for an updated Pre-Approval from your lender for the exact amount.

At this point you can also request an updated expense worksheet to get an estimation of your closing costs as well monthly payment.

Terms of The Offer

We will work together and formulate the actual sales contract "offer", including things like:

  • How much Earnest Money will be included
  • What day we can close on
  • Financing Guidelines
  • Inspection Timeframes
  • Appraisal Guidelines
  • Closing Costs
  • Contingencies
  • Offer Expiration
  • Any other items or terms we decide to include

What is Earnest Money?

  • Earnest Money is a "Good Faith" upfront amount that we put down on the property to show the seller we are serious about buying this home.
  • The Amount is usually 1% of the sale. For a typical home sale under $150,000 the amount will be anywhere between $500 - $1,000. Your Agent will discuss with you what amount would make a strong offer and you can decide how much to put down.
  • This amount usually gets credited back to you at closing or some lenders can use it as part of your down payment.

Send The Offer

Once your Agent has prepared the written sales contract, you will initial each page of the agreement and sign off on it as well. These forms are then sent over to Listing Agent, and they will present the offer to the seller. Each offer expired under a day & time that is discussed in advance, typically it's 24 hours from the time you send it in.

At this point, your Agent will wait to hear any updates from the Listing Agent.

Negotiation

The Seller has three options once they receive your offer. The seller can accept your offer, counter with different terms or they can completely reject your offer. If the seller sends a counter offer, we have the same ability to accept, counter or reject.

If the seller counters, then we begin to negotiate with the intention to come to an agreement on terms, price, etc. This is where having a strong Zachary Reed & Associates REALTOR comes in handy, because we do this on your behalf to get the best deal possible with the least amount of hassle.

Offer Accepted - "Under Contract"

Once everyone has agreed on terms, everything is put into writing and you are officially "Under Contract". At this point our transaction management team will coordinate with your lender so they can begin processing your file.

There's quite a bit of coordination going on behind the scenes at this point, Title Company, Inspection setup, Lender Processing, and so much more.

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About The Author

Zachary Reed
Zachary Reed is an Entrepreneur located in Kansas City. With vast business knowledge and experience, Zach has the unique ability to solve large scale problems that face day-to-day operations of a growing company.
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