Once you have found the home you wish to purchase, you will need to determine what offer you are willing to make for the home. It is important to remember that the more competition there is for the home, the higher the offer should be sometimes even exceeding the asking price.
Remember, be realistic. Make offers you want the other party (the seller) to agree too.
If you want to offer, let’s say 80% of the listed price. That will probably make the seller and the listing agent upset and you may not receive a counter offer…
Your real estate professional should provide you with an estimate of the current market value of the property so that you can make a good offer. Notice the difference between the listed price and the sales price of the comparable properties.
Then, make you offer around that percentage which may be between 1 to 3% of the listed price.
To communicate your interest in purchasing a home, your agent will present the offer to the seller and their listing agent.
The purchase agreement or contract constitutes your offer to buy and, once accepted by the seller, becomes a valid, legal contract. When you want to write an offer, you should be prepared to write a check for an earnest money deposit on the property. This is to guarantee that your intention is to purchase the property.
Accepted, Rejected or Counter Offer
The offer can be accepted, rejected, or the seller has the option to make you a counter offer. This is when your agent will consult with you and assist in negotiating the terms of the contract.
Step by Step Contract
The step-by-step contract procedure for most single-family home purchases is standard. The purchase agreement used is a standard document approved by the California Association of Realtors, written by attorneys, to protect all parties involved in a real estate transaction.
We Explain Purchase Contracts To You So You Understand
For this reason, it is important to understand what is written on the contract offer. Your agent or consultant should provide you with a purchase contract for you to read over during your real estate previewing stage of homes, condos or income properties. Your agent will go over the purchase contract with you and answer any questions you may have.
Real Estate Consultation
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