Making Your Offer

You’ve done your homework, found the right property, and now it is time to make your offer.  Here are some steps with explanations below:

  1. Know if you’re a Customer or a Client.
  2. We will complete the Purchase Agreement Form together.
  3. You’ll need to provide Earnest Money.
  4. Wait for the Seller’s response.
  5. Respond to the Seller’s response.

The more long-winded explanations ——

  1. Customer or Client?  Check out the Are you a Customer or a Client tab for more understanding.  The basic difference between Customer and Client boils down to my obligation to keep your bargaining information confidential.  Most people choose to be a client and we simply complete a form to that extent.
  2. Purchase Agreement.  I’ll have some basic questions for you —  legal names, contact information, amount you’re offering, how you will pay, and any contingencies you might have.  We can do this in person, by email, or fax.
  3. Earnest Money is just that — dollars that show you are sincere in making the offer.  Usually $500 to 1 percent of the purchase price in the form of a personal check.  The money will become part of your purchase dollars at closing.  If your contingencies aren’t met, the Earnest Money is returned to you.  If you back out – that’s when you lose the Earnest Money.  The offer form provides more details.
  4. The response deadline for the Seller is set by you in your offer and is usually 2 or 3 days.
  5. If the Seller counters your offer, he’ll give you a response deadline.  You can accept, reject, or counter again.  CAUTION: While you are negotiating, the property can be sold to another party.  You don’t have anything until you have an accepted contract, in writing, by both sides.

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