Tuesday, 28th of December 2010 at 06:07:49 AMAs simple as this sounds, it is often the time when a buyer will look at me with a “Now what?” look. It’s classic, a very brief moment when my window shopper has decided this is the property they want. Sometimes it takes me by surprise, but none the less, that’s where I go into over-drive, gathering information, forms and signature like a professional card dealer in high-stakes poker. There are several questions that should be answered before an offer is submitted (besides the most obvious of price).
First is, who is making the offer? As simple as this sounds, it can be complicated. This should match who is getting the loan. If it requires two people to qualify for the loan, than those people should be on the offer. Legal names, this will be used when taking title of the home.
The Money, this is often the first thing the seller is going to look at. How much do you want to offer, how much will be a down payment and which portion will be financed.
The Escrow Money, how much are you willing to put up front to take the home off the market while you prepare for the purchase? Be prepared to write a check at this point to make the offer. I recommend no less than $1,000 and up to 1% of the offer price.
When do you want to take ownership of the property. Sorry, right now really isn’t an option. If you are financing, this could take 30 to 45 days to get closed. If you are buying a short sale, this can be quite a while when the bank has to do their own research.
Do you want the seller to contribute anything to the purchase? A home warranty is a good option, there is also closing costs and allowances. How much money is associated with each of these.
What items are you expecting to stay with the home? Are there appliances that you want to stay? If there is anything that you are particularly fond of, you should make mention of it now, otherwise they maybe gone when you move in.
Will the 10 day inspection period work, or should we extend it because you want to make extra checks on the property?
What type of financing will you be doing? Your Mortgage Agent can/will answer this question, which leads to, who is your Mortgage Agent for this transaction?
Are there any contingencies that need to be added? Such as you will need to sell your home prior to purchasing this one.
As you can see, it starts simple as I want this house and from there, we have lots of questions to answer to make the offer. Don’t worry, I’m here to shuffle all those pieces of information and forms to produce your offer and get you the house.
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This is a great checklist to cover your bases when you hear those magic words. Thanks for sharing!