An Offer to Buy
A buyer makes an offer by submitting a written and signed offer to purchase. This document becomes the sales contract when signed by all parties involved.
“Presenting the offer” begins when the selling agent registers the offer with The RealEstate Group office. We will then arrange a presentation appointment with the home seller. The buyer does not attend.
You now have three options:
- You can accept the offer as written.
- You can make a counteroffer, changing any unacceptable conditions. This counteroffer is written on a special form and signed by you. When this is given to the buyer, the buyer can withdraw, accept or counter the counteroffer.
- You can reject the offer if it is totally unacceptable.
When both buyer and seller agree to all terms (including changes made in any counteroffer) and indicate agreement by their signatures, the contract becomes “firm.” With signatures and notification to all parties, a sales contract now exists.
Price
- Decide on a price. The RealEstate Group can estimate your proceeds – the sale price minus fees, taxes, and insurance.
- Don’t be concerned if the offer is your asking price. It doesn’t mean you under priced your home, but rather that you priced it right.
- If the price is less than you wanted, look at the contract as a whole. Perhaps the buyer is assuming some of the closing expenses you expected to pay.
- Consider splitting the difference if you and the buyer come within about $1,000 of each other. Remember time on the market is an additional expense.
Earnest Money
An earnest money deposit is usually credited to the buyer and applied to the down payment. If the buyer fails to follow through with the contract once it’s accepted, it is customary for the earnest money to be forfeited to the seller.
Multiple Offers
It is possible to receive more than one offer to buy. All offers that are registered before a final acceptance must be presented to the seller. As the seller, you should hear each offer and ask questions. You do not need to act until you’ve heard all offers. If more than one offer is accepted or countered, an order of precedence must be established, such as primary, first backup, second backup and so on. Your listing sales associate will answer your questions as they occur.
Conditions
Review the contract for the special conditions under which the buyer is offering to buy your home. A common condition is one in which the purchase of your home is contingent on the buyer selling his or her old home. The conditions may also include providing assistance with closing costs.
