Home Buying: Making an Offer
When you find a house that feels like home it's natural to be excited and anxious at the same time, especially when preparing to make an offer. As the buyer you want the best value – while the seller wants the best price.
There is no set formula for calculating a realistic offer letter. Naturally, the buyer wants the best value and the seller wants the best price. However, real estate negotiations can be influenced by many factors – for example, a seller who is changing jobs and needs to move quickly, or a buyer who has their heart set on a specific home.
Understanding the Offer in the Home Buying Process
Once you've evaluated the home's features, asked questions, reviewed comparable home prices and sought real estate advice from your agent, you’ll have a good understanding of the home’s current market value. Consider what you can afford and make an offer that you deem fair.
If a counteroffer is made, you'll have some time to respond. It’s not uncommon for several rounds of negotiations to occur before both parties agree or one party ends negotiations.
Generally, during this time, you’ll also begin arranging for an inspection and applying for a mortgage with providers like Guaranteed Rate Affinity.
More Real Estate Tips: What Is Earnest Money
When you sign an Offer to Purchase, you may need to provide “earnest money” – a deposit that demonstrates you’re serious about buying. Typically, earnest money ranges from 1% to 10% of the sale price and is held in an escrow account. An earnest money deposit is not required in all states.
If your offer is accepted, your earnest money will go toward your down payment. If your offer is not accepted, you'll receive the full amount back. But be aware that if you withdraw your offer without cause, you may have to forfeit the full amount of earnest money.
Hiring an Attorney for the Home Offer Process
Many buyers choose to engage an attorney to assist with the often lengthy and complex documentation needed to purchase a home. An attorney can also accompany you to the closing to help ease the process.
If you don't know a real estate attorney, ask for recommendations from your Coldwell Banker Realty affiliated agent, who often collaborates with attorneys in your area.
Protecting Your Investment With Homeowner’s Insurance
Now that you’ve made an offer, you’ll want to explore your options for insuring your property. It’s important to work with insurance professionals, like Anywhere Insurance Agency, who can help you protect your investment by comparing coverage from a wide network of respected regional and national insurers. Their team works with you to identify policies that not only meet your coverage needs but also support your goal of securing affordable premiums. From coordinating with your lender to providing proof of insurance for closing, they help ensure a smooth and timely process.
Navigating Your Home Purchase Online
The Coldwell Banker® Transaction Manager system provides you with a safe, secure and user-friendly way of keeping track of your property purchase communications and documentation, from start to finish.
This dedicated, secure website stores your transaction-related documents so you can access them at any time, from anywhere – providing:
- Constant visibility at each step of the purchase process
- An environmentally friendly option to reduce paper clutter
- Conveniently retrieve information from your purchase or sale
Your Coldwell Banker Realty agent will be happy to help you set up a personal Transaction Manager account when you’re ready. With our full slate of services, it’s home buying made easy!