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:
- Know if you’re a Customer or a Client.
- We will complete the Purchase Agreement Form together.
- You’ll need to provide Earnest Money.
- Wait for the Seller’s response.
- Respond to the Seller’s response.
The more long-winded explanations ——
- 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.
- 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.
- 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.
- The response deadline for the Seller is set by you in your offer and is usually 2 or 3 days.
- 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.