If you have spent time searching for your dream home and you have finally found the home that suits you best, it is time to put in an offer. It is very important to approach putting an offer in on a home as a business arrangement. Just because you are putting in an offer on a home, does not mean that you will get it. With a good buyers agent, and with proper negotiation and experience, you can put yourself in very good hands for submitting an offer on a home so that you have a better chance at the offer being accepted.
There are some components of an offer to consider:
1. Price: it is very important to try and negotiate price with the home owner. Real estate agents with experience will know the market that they are dealing in, and will be able to provide proper references for any offer that they make as well as good negotiation skills which can help to shave thousands of dollars off of the asking price of a home, saving you money. A good buyer’s agent will be well versed in the market that you are purchasing a home in and will have plenty of research to help you in the price negotiations.
2. Terms: Terms are the conditions which are placed in an offer about the details of a sale and they are made up of a number of components which follow.
3. Schedule: The schedule of events is a detailed outline of all of the events that will need to happen before the home can be passed over to new owners. Schedule can include when the old home owners would like to move out by and when they promise to have all of their items out of their old home.
4. Conveyances: There are certain items that are generally left in homes by the previous owner. Major appliances are sometimes left including refrigerators, ovens, dishwashers and even some furniture. By including these details in the offer, this helps to avoid conflict later.
5. Commissions: This is where the real estate agent will determine their final commission fee. The buyer’s agent and the seller’s agent will both outline their fees in this section of the terms so that they can be documented.
6. Closing costs: The buyer of the new home will be responsible for covering the closing costs of the home. This can be added into the loan payments but this needs to be written into the terms, otherwise the new home buyers will have to pay the costs upfront before moving into their new home.
7. Warranty: This will cover repairs and replacement of major appliances and home systems for a fixed period. You can negotiate a warrantee with the previous owner of the house, but if something breaks within your first few months of living within your new home, you can ask them to pay for the repair costs.
8. Earnest money: This is a protection policy that works to protect the sellers of the home from having you pull out of the deal and explains that your offer is sincere and should be taken into consideration or refused.