So you've found that perfect house! You are absolutely ready because you have done all the things to get you there such as found an agent, you are pre-approved and know exactly what you want... Doesn't that feel good?!? Now we will prepare the offer.
There are several things to consider when making an offer. You will need to be prepared to have cash on hand to provide a deposit, pay up front for an inspector, sometimes you will have to pay an appraisal up front as well.
The deposit, this could be $500.00, $1,000.00 or any amount really, depending on situation. This will not be submitted until the offer is signed by both seller and buyer. At that time the offer becomes an executed contract. A legally bound contract between both parties. After you are under contract you will have to immediately give the check to your agent. They will deliver to the Listing Agent for the check to be deposited IMMEDIATELY into escrow. Don't worry, the deposit is safe in a set up account at that brokerage. I can't say this enough, make sure you have the money in the checking account because it WILL be deposited immediately. (yes, I repeated immediately, but I had to) The deposit is "good faith" money that says you (and seller) will hold up your end of the deal. Yes, you will certainly get that money back at closing in either the form of a check or you can choose to apply that money to closing costs. It's your money. However, should you break the contract with no good reason you will lose that deposit and it will go to seller. Also, breaking a contract without valid reason can lead to legal measures. Same goes with the Seller, they cannot break the contract without a valid reason. More detailed information about the deposit is located in the offer/contract you sign. Make sure you understand that fully and your Agent will discuss with you before you sign.
The inspection is something you, as a buyer, is allowed to do and very much encouraged. This will cost you $350.00- $450.00 (prices may vary) and will be paid directly to the inspector the day of inspection. Remember, if you choose to use a credit card to pay, check with your lender to make sure that is ok to do. In the contract you will see that you have a certain amount of time to do your due diligence. Your Agent will explain this to you. During that time period you can hire your own personal inspector to do a thorough inspection of the home. This includes and not limited to, electrical, plumbing, checking ac, heating, attic, roof.... The inspector is very knowledgeable in home inspection so he/she will use their expertise to recommend areas that may need attention by a licensed contractor, electrician, roofer, plumber... You and your agent will go through the report and decide what items may need to be addressed by the seller. Remember this is not a to do list for the seller, it is so that you can get a good idea of what you are buying. A good inspector will also explain any of his/her findings. Ask questions! A "response to inspection" form will be sent to seller with items that you want the seller to address. Time is of the essence, if you do not respond prior to the end of the inspection period it will be assumed you accept the property in that condition. Your agent will explain the inspection process this is very important. If you do not have an inspector, your agent, friends or family can recommend a few for you to choose from, references are priceless because they know from their own experience with them.
The appraisal, your lender will order this for you after all is good to move forward after inspection. You will need to consult with your lender as to how they want it paid for and the price.
In closing, once you are under contract, your time clock begins. Your agent should have set the expectation of what will happen next. May sound scary but as long as you are diligent in communication with your Agent and lender you will be just fine to get through the first part of the journey of being under contract!
Donnice MacDonald, REALTOR® eXp Realty "A referral is the greatest compliment" 225-405-8187 [email protected] * licensed to practice real estate in Louisiana
Author:Donnice MacDonald Phone: 225-405-8187 Dated: October 6th 2016 Views: 543 About Donnice: I am a REALTOR with eXp Realty. I'm so excited to join this amazing cloud based brokerage. A great R...
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