Writing the Offer
After you find the right home, Donna will work with you to write an offer to purchase and begin negotiations with the seller. Below are the key items in an offer to purchase.
- Purchase Price – The purchase price is the most significant part of the offer and is largely dependent on market conditions. In a competitive market, buyers may actually offer a purchase price that is higher than the home’s listed price to ensure they get the home. In a slow market, buyers have more leverage and may be able to buy below a home’s list price.
- Closing Date – This is the date that the home would officially be purchased by you from the seller. Typically, the closing date is 30-45 days from the day you write the offer to purchase. During that time a number of things happen. You finalize your financing, make arrangements to move, and secure homeowner’s insurance. The seller makes any agreed upon repairs and prepares to move. The closing attorney prepares all the paperwork to transfer ownership from the seller to you.
- Closing Costs – If the house you select is at the top-end of your budget, you may want to include a request for the seller to pay some or all of the closing costs. Like the purchase price, the request for closing costs and their amount are largely driven by market conditions.
- Contingencies – Most offers are written with some contingencies. First, it is standard practice to make a purchase offer contingent upon you obtaining a mortgage. (In the offer to purchase, you list the type and percentage of financing you plan to use.) Next, most offers are contingent upon a satisfactory home inspection and/or certain repairs being done.
Keep in mind that market conditions influence how these items are handled from a buyer’s perspective. If there are a lot of homes on the market, you will have a fair amount of negotiation leverage. However, if there are many buyers and few available homes, you will have less room for negotiation.