Making an offer to purchase a home
Negotiating The Purchase of Your Dream Home
In most cases, be prepared for counter offers. Don’t let the pressure get to you. Remain patient, and let your REALTOR® act as your liaison with the seller or the seller’s agent. You may need to be flexible on price, closing date, appliances and repairs.
Beware of putting contingencies in your purchase agreement. They weaken your offer. However, if you currently own a home, your offer may need to be contingent on it selling. Or, if you’re uncertain about the structural integrity of the home, you should have a home inspection contingency, also you you should have a home appraisal contigency. Just be aware that any contingency could take you out of the running if a non-contingent offer is presented.
Earnest Money Deposit
Once your offer is accepted, be prepared to seal the deal with the earnest money deposit. Earnest money is usually a percentage of the home’s purchase price that indicates you are serious about the purchase and indicates your good faith. It’s generally applied to the purchase price when you complete the purchase, but may be forfeited to the seller if you fail to complete the purchase. Contact your REALTOR® to determine the amount of earnest money you should be prepared to pay based on your target home price.
Many first-time buyers are taken by surprise when it comes to earnest money, especially if they have to make a fast offer. Be sure to discuss with your Agent the appropriate amount of earnest money you should be prepared to pay based on the price range of properties you’re looking at. You should have this amount available in your checking account so you can write out an earnest money deposit check on the day you sign your purchase agreement.
Call us for additional information on making an offer to purchase a home in San Diego.