What to Expect When Making an Offer
When you're home hunting, you're on the lookout for that property that ticks all the right boxes. And when you see a home that you love, tell your Realtor right away that you might be interested in making an offer.
But what can buyers expect when making an offer? Today, we're looking at What to Expect When Making an Offer.
Making an offer on a home can feel scary, even for experienced buyers. There is a lot of paperwork and jargon that might be confusing. Our team will help you understand everything and guide you through every step.
Let's look at what to expect when making an offer, and what our team will be doing to make your offer the strongest it can be.
FMV
So, we will need to know how much the home is worth, by figuring out the home's fair market value.
This will help us decide how much we should offer for the house. We don't want to bid too high for the property, but we do want it to be competitive against other offers. We will protect your interests by helping you choose what clauses and conditions to include in the offer, like home inspection or financing.
Paperwork
There will be a lot of paperwork on our end when working with you. The most important document is the Agreement of Purchase and Sale, which is the formal offer to the Seller. It has virtually all the details laid out in it about the offer to purchase.
Offer Presentation
We will make an offer presentation on your behalf. The real estate agents for the buyer and seller meet. The buyer's agent presents the offer, showing the numbers, clauses, and conditions.
Your agent should be able to meet with the buyer and sellers in person. You can stay in contact when with your realtor using email or video chat. If things move quickly, you should be available by phone, text, or email.
Irrevocable Period
After we submit our offer, the Sellers have a set amount of time to decide whether or not to accept it. This time period is called the irrevocable period.
During this time, the sellers will be considering whether or not your offer is good enough. If they don't accept it within this time, then your commitment to buying the property ends.
Offer Response
Next, negotiation could be needed depending how the sellers respond to your offer. There are three things that can happen after you make an offer on a house.
1. The first is that the seller accepts your offer, including the terms, conditions and price.
2. The second is that the seller counters your offer, which means they want to negotiate some more. This is where strong negotiation skills come in.
3. The third thing is that the seller rejects your offer immediately. This often happens when your offer is too low or when there is a high volume of offers.
Deposit
If your offer is accepted, you will have to give the listing brokerage a deposit within 24 hours. So, get ready to act fast, and have that money ready.
Conditions
If there are conditions from either side, they need to be completed on time. If there are no conditions, the offer is now solid. Your lawyer will help you close the purchase and protect you while doing so.
