What Makes A Good Offer to Purchase?
What Makes A Good Offer?
Once you decide on a home, your next step is to negotiate an offer to purchase. We will provide you with a “sample” offer to purchase and explain the agreement in detail.
Good offers are based on a realistic offering price. You should base your offering price on the prices of like houses (similar size, location and condition), which have sold within the past six to 12 months. I will be able to provide this data.
Good offers contain an earnest money deposit. One to two percent of the offering price is customary, though the seller may request a higher deposit. These funds are held in an escrow account until closing. The funds are then credited to your purchase. (Alternatives 1 or 2 may apply in NC.)
Good offers have realistic financing terms. Your mortgage interest rate and the time allotted to obtain financing must be based on the current lending conditions. Some offers are rejected because the loan terms are unrealistic.
Good offers include a copy of your “pre-approval” letter from a lender. This will demonstrate to the seller that you are a serious buyer who is able to secure financing.
Good offers don’t ask the seller for a blank check. At the time your offer is initially submitted, you won’t know the degree to which corrective measures will be needed on the house for repair or replacement. The inspection clause is a part of the agreement, which allows you to reopen negotiations regarding any necessary corrective measures. I will negotiate these items for you.
You will be given a period of time to have all inspections performed and to make all repair requests to the seller. Good offers allow enough time for the repairs to be made and allow you an opportunity to have the property re-inspected prior to closing.
Once the Offer to Purchase is submitted, I will handle all the negotiations. Items that are typically negotiated are purchase price, earnest money deposit, loan commitment date, closing and possession date. Once the Offer to Purchase is ratified, I will handle all additional negotiations regarding inspection and repair items.
Purchasing a home can be a very emotional experience. We will make the process a pleasant experience for you.