Tip #9 - What to Expect When Writing an Offer

During house hunting, if you find a home you love and are ready to pursue trying to purchase it, you will submit an offer to the sellers. Your Realtor will walk you through the residential contract specific to the area you are purchasing a home in (contracts differ from state to state), and will talk you through the following points as you decide what to offer:

• Is it priced right for the market?

• What amount do you want to use as a down payment & what amount do you intend to finance through a mortgage?

• What is the seller's motivation?

• Do you need concessions for closing costs?

• Are there multiple offers on the property?

• What is your ideal timeline for closing on the home?

After talking through the above points (and likely others depending on your situation), your Realtor will prepare the offer based on the price and terms you choose. Your agent will then present the offer to the seller’s agent, and will likely negotiate with them in order to get the best terms for you.

Once you and the seller have agreed to the price and terms, you will go under contract! In this stage (being “under contract”), the home is effectively held for you until closing. The contract provides a timeline for your option period (which is the timeframe you have to back out of the contract for any reason), finalizing your financing, inspecting the physical condition of the home, and making arrangements for your move. Your Realtor will keep you informed throughout the process, and will help you prepare for closing (my next blog, "Preparing for Closing", covers everything you'll need here)!