Making an Offer
Once you have found the home that’s best for you, it is time to consider an offer. Together, we will determine the home’s true market value, the seller’s motivation, the cost of necessary upgrades, and other factors that might influence your offer including:
How long the house has been on the market? If it has been on the market a long time, the sellers might be willing to accept a lower price.
How does the house compare with others in the neighborhood?
Is the house in need of major repairs or substantial updates?
How old is the roof and other major systems? How many more years are expected to the useful life and/or functionality?
Where have home prices gone recently in the selected market?
Along with your offer, you will have to provide an Earnest Money Deposit (EMD). In today’s market, it is customary to provide a 1%-5% earnest money deposit.
One the contract has been submitted, we will negotiate any terms of the contract with the seller. The most common negotiation points include: sale price, seller’s credit, closing schedule, etc. Once the contract has been negotiated completely and both parties agree to said terms, the document is fully “ratified” and we begin the steps toward closing.
In most cases, your contract will be contingent upon a home inspection. This is the period in which the buyer has the opportunity to inspect the entire property and make a list of concerns for the seller to address. Generally, the home inspection is paid by the buyer and costs between $400-$700 based on the size of the property.