Submitting the Offer
After searching and touring homes you have found the home you want to purchase. What to do next? Here are some steps to guide you through the offer process:
First Step: Set the Price
We will break down the price of the home with other comparable homes that have sold recently. We also want to check out any other homes that are still on the market that are comparable — hopefully we have already seen them and have a good idea of what is on the market in this area.
Second Step: Draft and Sign the Offer
We will submit the offer at the price you want and with any contingencies you would like to add. Here are some things that we will need to get the offer setup and back to you for signing:
- Amount of offer
- Legal name(s) of the buyers
- Amount of down payment you are putting down
- Pre-approval letter or proof of funds (if paying with cash). Sellers will not consider offers without one of these two things. Proof of funds please just leave the amount and name on the account (cross out accounts numbers).
- Earnest deposit of $1,000 made out to the seller’s broker. This money is part of the down payment and will be placed in the broker’s escrow account. It CANNOT be comingled with the broker’s funds. If you pull out of the deal due to the home inspection or mortgage contingency, we will get these funds back for you. Our job is to protect you and your funds, and we will be right on top of this for you.
- The closing date you need. Usually, it varies from 30 to 60 days out — so any vacations or days you know you will not be around need to be excluded.
- Contingencies. Two main contingencies that are almost always built into any offer are inspection and mortgage, but there can be others. However, the more contingencies you have the less appealing your offer is to the seller. For more details, please see our contingency page.
- Any other items you may want built into the offer. For example “we would like the washer and dryer included with this offer” or “seller to pay $5,000 of buyer’s closing costs.” Items like these can be added to the offer, and should be if you really want something included.
- Once all the paperwork is ready we will get it back to you to be signed by you, the buyer(s). BDRE agents use electronic signing software (free for you to use) that allows you to sign any document wherever you may be as long as you have access to your e-mail account. This lets you to sign an offer or any needed paperwork wherever you may be! You can be out of the country and as long as you have access to your e-mail account you can sign. We do not need to rush around looking to get signatures and hoping we get the offer in on time. At BDRE, we invest in technology to try and make your home buying process run more smoothly. We also can get together and sign in person if you are more comfortable with that. Whatever works best for you!
Third Step: Send the Offer to the Seller
We will now submit the offer to the seller’s broker/agent. In most cases we will give the seller’s 24 to 48 hours to respond to your offer. Three things can happen now:
- The seller can accept the offer.
- The seller can reject the offer outright or not respond to your deadline (this sometimes happens with offers the seller finds insulting).
- The seller can counter offer. Any change to the original offer is a counter offer. Counter offers are usually verbal and over the phone or e-mail. An important point to remember is once we come to a verbal agreement, we must get it on paper and signed by both the buyer(s) and seller(s): you must have the contract in writing and signed by both parties.
Put the Bird Dog to work for you!