Making An Offer 101

Dated: 08/26/2016

Views: 294

Johnson City Homes

Ahh, you found it! THE one. It's in budget, in your school district, and has all the must-haves on your long list. So now, what to do. Well you, my friend, are going to make an offer. The offer and acceptance are the first key elements to buying a home. We (probably) don't have to tell you, but no agreement takes on legal properties until there is a signature, of both of the parties. Today, we look at an offer to purchase. 

It would be beyond great if you could just knock on the door of the diamond and say "I'll take it", and handshakes followed. Realistically, how secure would you feel with that, not to mention how Mr./Ms. Seller would feel. Contractural agreements are in place for a reason. Security. Purchase Agreements are assurance that neither party is left in the dark, or that anything is 'forgotten' in the transaction of buying the house. Purchase agreements are legal documents stating your intention to the seller. When you decide to make an offer, you are essentially telling the seller your intentions, how you are going to do it, and then put an expiration date on it.

One of the largest pieces to the offer puzzle is working toward an agreeable purchase price. When the seller set a price for their home, this can be considered a starting point. Before writing an offer, be sure to ask your agent to check comparables on the home, showing what comparable homes have sold for. Do research on your own as well to help you arrive at an offer price. There will likely be some negotiating back and forth, be sure to stay in touch with your agent, and know that the clock is ticking. Be prepared to state what you would be willing to do in the event of a counter from the seller. 

Considered a pain point by some, is the earnest money. This is so important; it puts some 'skin in the game' showing the seller you are serious about this offer, and you want their home. Any earnest money you put down will be held by the brokerage firm until closing. Earnest money acts as a safety blanket for the seller, not only does it tell them you're seriously interested, it may also give peace of mind to the seller knowing you aren't putting offers on other homes. You can rest easy giving an earnest money deposit, conditions in the purchase offer can protect your money if you have contingencies, such as a failed home inspection, failure of the seller to carry through on items on their end, etc. In Tennessee, there is no set amount, but just know the more, the evidence of your intention is recognized. The earnest money amount will be up to you. 
Keep in mind that your real estate professional works for you. And only you. Any correspondence with the seller is conducted by your buyer's agent, and the seller's agent. You will likely never have to talk to the seller, unless they meet you at the closing table. 
There are many other components in a purchase offer, but we only have so much space. We'd love an opportunity to chat with you about the rest if you're in the market for a home! We're in the office, and ready for your call at (423) 433-6517, or, stop in our office inside Keller Williams Realty, 1033 Hamilton Place in Johnson City. We'll get you offer-ready!

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Rayne Price

Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....

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