Making an offer
When you have found the house that meets your needs and maybe even realizes your dreams, it’s easy to imagine yourself moving in right away. But the best way to get to move-in day is to do some realistic thinking and negotiating first.
When determining what you should offer, you need to consider:
- The condition of the home
- The demand for other homes in the area The home’s value relative to others in the area (fair market value)
- How long it's been on the market
- How much you really want it
Considering all these factors well usually requires the expertise of a real estate agent. They can balance these factors to get the lowest bid that will attract a seller. It’s important to present a competitive bid—some sellers will counter-offer a “low ball” offer, but others might dismiss the bid altogether.
At Mendenhall Properties, Erin will advise you on ways to make your offer more attractive in the metropolitan Washington area: for instance, a mortgage credit approval and flexibility on the closing\settlement can ultimately close the sale. Rest assured that Erin is well trained in the techniques of negotiation. After helping you think through the options, she will go to bat for you and tactfully negotiate on your behalf.
The written offer. When you have decided on offering for a house, you submit a written offer. It’s customary to meet with the seller in person and include a deposit as a token that your intentions are serious. (Your deposit is placed in a trust account if the seller accepts.) If the seller counteroffers, you may agree to that price and terms, or make your own counteroffer. Once you and the seller agree, both sides initial the final price and terms shown on the agreement of sale.
Finalizing the contract. The final contract will specify the items in the home included or excluded in the sale, as well as any additional provisions either side wants to have as part of the contract. For example, depending upon the price of the home and the size of your down payment, the contract may specify a date when an additional deposit would be placed into the trust account. At this time, the mortgage company or your attorney will order a title search and insurance. Also, if you haven’t yet been approved for a mortgage, the contract usually specifies a deadline for approval. The contract is contingent on the mortgage—failing to get credit approval by that date will nullify the contract unless the seller agrees to extend it.
If you are looking at buying a house in Northern Virginia or Washington D.C., Erin has the inside scoop on the upper-end metropolitan housing market. Click here to follow Erin’s updates on the Metro D.C. real estate market.
