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Making an Offer
Once you find your dream home and are ready to make an offer, there will be some negotiating involved with regard to price, condition of home, time of closing, inspection repairs, etc. Your goal is to get what you want and to imagine the seller's reaction to everything you include. "Negotiation" is a give and take process. Because of the huge dollar amounts involved, both you and the seller want to build in contingencies and protections for your investment and limit your risk. As your agent, I will help you prepare the offer, guide you through negotiations and explain to you every detail of the contract.
Included in the offer will be the "earnest money" or "good faith deposit" -- a minumum of $1,000 down. This is money to "hold" the property and shows the seller that you are serious about buying their home. The earnest money will be deducted from what you have offered on the home at close of escrow. Once the offer is accepted, you will receive property disclosures from the seller. I always recommend you have a whole house inspection as well as a pest and dry rot inspection. This will cost you about $350 and is for your protection. Your offer will be contingent upon you accepting the results of this inspection and may be contingent upon the seller paying a certain amount of money in repairs. If you are buying rural property, you will want to get a well-flow test and septic inspection. The seller is required by law to get a bacteria and coliform test on the well water.
If you are applying for a loan, your offer will be contingent upon you getting the loan. A pre-qualification is different from being approved for a loan. Your lender will schedule an appraisser to make sure that the property is worth the sales price. This will be your cost and it will be anywhere from $400 or more depending on the property. If for any reason you or the property become ineligible for the loan, you will not be required to complete the transaction. And finally, there will be a clause for a final walk-through. This allows you to inspect the property, usually just a few days before closing to see that it is in the condition you originally saw it when you made your offer. Each transaction is different, but this gives you the general guideline of a typical offer.
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