Making an Offer
Here are some very practical tips on making an offer on a house. Whether you are buying or selling a home, consider the sale of a home as a transaction that is beneficial to both parties. It is true that an asking price is exactly that: An asking price. Very often buyers and sellers become emotional, feel slighted or even offended if neither party makes responsible and realistic offers
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For all purposes, this is a business transaction that requires multiple parties and often outside services and financing. The “other” services require more time than most people think, but the key to moving the entire process along is an agreement, legally binding, between the buyers and sellers of homes.
The Offer Process
The buyer gives an offer to a buying agent who writes an offer letter. The buying agent meets with the selling agent usually with the sellers present. The buying agent presents the offer. The sellers decide to accept the offer, counter the offer or reject the offer. Sometimes there are contingencies with the offer, the counteroffer or both. A contingency is an offer with a set of specifications or requirements attached.
Some of these contingencies include:
- I will purchase your house if and when I sell my current house.
- I will purchase your house if you fix the back stairs to the house.
- I will purchase your house if my mortgage loan is approved.
Sellers can also add contingencies in their counter offers. Also, either party has a time limit set to respond to the offer/counter-offer and can withdraw it prior to that time if there is no response. Doesn’t this make buying a car seem simple in comparison?
When you are seeking to make an offer make your most reasonable offer.
It is unlikely that the seller will make more than one counteroffer. When you are seeking your deal make sure you understand all the times included in the sale. If you want the kitchen appliances, you need to make sure that is understood. Items that are permanent attachments are included in the sale of a house but if there is some special item, for instance, an antique chandelier, make sure it is part of the offer. The last thing either a buyer or seller needs to do is haggle over an old stove. Closings have failed for less.
