
Are You Prepared to Submit an Offer? Here’s What You Need to Know!
When you’re ready to submit an offer on a home, there’s more to it than just picking a number and crossing your fingers. Here’s a quick rundown of the key details to keep in mind so you’re fully prepared!
Price, Down Payment & Closing Costs
First things first: know your budget! Decide how much you’re comfortable offering (and your lender is on board with). Don’t forget about your down payment—typically 10-20%—and closing costs, which can range from 2-5% of the loan amount. Get clear on all this upfront so you’re not surprised later.
Appliances or Other Items Staying or Leaving?
Is the washer and dryer included? How about the fancy refrigerator? Be sure to clarify with the seller what’s staying and what’s going. Sometimes those shiny appliances are negotiable!
Earnest Deposit
Think of this as your “good faith” money. It shows the seller you’re serious, and it usually ranges from 1-3% of the home’s price. The good news? It counts toward your down payment or closing costs if your offer is accepted.
Seller Concessions
This is where the seller might help cover some of your closing costs. Negotiating these can ease the financial burden, but it depends on the market and the seller’s willingness.
Modifications to the Inspection or Appraisal Sections
Once you’ve had a home inspection, you might need to negotiate repairs or ask for a price reduction if something major comes up. You might also want to review any contingencies related to the appraisal—sometimes you’ll need to modify terms if the home doesn’t appraise for the offered price.
Escalation Clause
In a competitive market, an escalation clause can automatically increase your offer if someone else bids higher, up to a set limit. It’s like a safety net for your offer, giving you a shot at winning without overpaying.
Possession & Close Date
Get on the same page with the seller about when you’ll officially take possession. Some sellers need extra time, while others are ready to hand over the keys ASAP.
Fully Understand Seller’s Disclosure
The seller’s disclosure provides crucial details about the home’s condition. Make sure you read it carefully—this is your chance to know about any potential issues, from plumbing problems to past flooding. You’ll want to be well-informed before making any commitments.
Submitting an offer isn’t just about the price—it’s about the whole package. Make sure you’ve got all the details straight, and you’ll be much better positioned to land your dream home!
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