It is always exciting to be a first time home buyer out on the search for a home. A lot of my clients, and this Locust Grove Realtor ®, really enjoy getting to tour homes and see all the different ways homeowners have made their Locust Grove home their own. When buyers finally find “the one” the next step is to write an offer. But, what exactly is in an offer? Is it just the price? Let’s look at the parts of an offer, so when you are ready to write one, you will know what it is all about.
Price
Working with your Locust Grove Realtor ®, one of the biggest pieces of an offer is determining how much you want to pay for the home. We will use comparables (homes of similar square footage and condition that have recently sold) and knowledge of your mortgage budget to offer a competitive price to the sellers.
If you would like to request closing cost concessions from the sellers, this will also be included in the offer.
Closing Date
An offer also contains the date that you purchase the home. Typically, this is a date thirty to forty-five days out from the date of the offer. This gives time for inspections to be completed and for your mortgage to be finalized. Cash buyers can purchase homes faster, but they still may leave some time for inspections and for the title company to complete its work.
If you have a home to sell or are purchasing a new construction home, your Locust Grove Realtor ® will work with the sellers’ Realtor® to find a date that works within that timeline.
Inspections and Contingencies
An offer outlines the inspections that the buyers wish to complete. Some inspections, like a water quality test for wells, can be mandatory ones from the lender in order to finance the home. Home inspections give the buyers a deeper look at the condition of the home. The offer will outline how long the buyers have to complete these inspections.
The offer also includes other contingencies (items that must be completed for the sale of the home to proceed) like an assessment contingency; an assessment will be completed on the home to demonstrate that the value of the house is at or above what it is being purchased.
Lending Information
The offer will also share how the buyers are going to purchase the home. It will indicate the lender being used, the type of loan a buyer is using, what the down payment is, and what the earnest money deposit total is. All of these details are reasons why your Locust Grove Realtor ® will want you to be pre-approved for a mortgage before your begin searching for a home.
Items in the home (personal property)
An offer will also include a list of items that the buyer would like to convey with the home. These usually include things like the stove, refrigerator, other appliances, light fixtures, garage door openers, and exterior buildings like a shed.
How is the offer written?
The offer is typically written in a standardized form where your personal information can be filled in and customized to the property. Your Locust Grove Realtor ® will take you through the written offer and explain all parts of it before you sign it and send it to the sellers.
What happens after I write an offer?
After your Locust Grove Realtor ® has sent the offer over to the sellers, we wait for a response. The sellers have several options. They can
- Accept the offer as is
- Counter with changes to any part of the offer (like changing the price or closing date)
- Reject the offer
If the sellers accept the offer, you are on your way to homeownership. If they reject your offer, then you and your Realtor ® can continue to look at other properties. If the seller counters your offer, then you can decide to continue to negotiate using your Locust Grove Realtor ®, accept their counter offer, or move on to another property.
Are you searching for a Locust Grove Realtor ®? I’m always here to help when you are ready!