Series - The Home Buying Process Part 6

Imagine this ...

You have narrowed your Search Criteria, you obtained your Mortgage PreApproval, we've gone out and toured homes and you found the one! Now you are ready to begin the negotiation to make it yours!

Let's touch on submitting a complete OFFER to the seller:

1. The most important - The Purchase Price - When we are deciding what to offer the seller, we want to make sure the list price is not inflated. I'll let you in on a little secret .. do you know how the seller and the listing agent came up with their list price? They used the comps (comparables) for that neighborhood of other homes, in that same area, that sold in the past few months that are similar to this home. I will also run a comp report to determine if the listing price is accurate based on the comps. Our offer will be in line with the comps.

Questions to keep in mind when looking at the comps:

Were the homes bigger?

Were they in better condition?

Did they have a more appealing location?

All of these factor into our decision of determining Market Value for the home you are looking to buy. Once we know how much we truly think the home is worth THEN we will have a discussion if we think it makes sense to offer below, at, or even above list price! Going above list price is not a bad thing if we think that the market value is higher!

2. Earnest Money Deposit - Remember in part 3 we mentioned this? Generally 1-3% of the purchase price and needs to be included in our offer.

3. Closing Date - When do you ACTUALLY want to take possession of the home? Get those keys!

4. Financing Terms - Cash? Conventional Loan? FHA Loan?

5. Inclusions/Exclusions - Keeping the window treatments? Patio furniture? Certain Appliances?

Our proposal to purchase outlining these terms as well as the Mortgage Pre-approval need to be submitted together to the Listing Agent so they can present it to the seller. They will either reject, counter, or accept our offer!

You’re almost there! After our offer is accepted, the home inspection and appraisal completed, and everything is in line; next…is Closing Day!

Do you have more questions for me? Connect with me here.