Things to Mentally Prepare For Before Making An Offer
These recommendations will change based on the condition of the market, the property, the day of week, etc. This is intended to give you an outline of the negotiable/fill in the blank topics we’ll be discussing when it comes time to actually put in an offer.
1
Purchase Price
Think about the absolute MAX you are willing to pay for THAT specific property. This has nothing to do with what the Seller paid, what the Seller owes, or what the Seller is asking; it has everything to do with what the market says it is worth TODAY. What dollar amount will you be happy and content with, keeping in mind that another Buyer may be making an offer at the same time?
2
Due Diligence (DD) and Earnest Money (EMD)
a. NC Due Diligence:
This fee is 100% non-refundable should you terminate the contract for any or no reason. This fee is applied towards your total purchase price should we get to closing, which we anticipate. Also, the Due Diligence is ONLY collected IF we execute a contract, which means your offer has been accepted. Based on market conditions, your offer may need to be more or less competitive. For example, in a hot market your offer may need to be higher, but can be lower if a property has been on the market for a while or in less competitive situations.
b. Earnest Money Deposit:
This is a deposit held in Escrow by the closing attorney and/ or title agent. This deposit is refundable should you terminate the contract during the Inspection Period (21 days for example). Should you terminate after the Inspection period, the deposit is released to the seller. Should you move forward with the contract to close, this deposit is credited towards your total down payment/closing costs.
3
Inspection/Due Diligence Period
This is the period you purchase (by paying the Due Diligence Fee) from the Seller to inspect the Property. During this period your Earnest Money is protected in Escrow. Various inspections include but are not limited to radon, mechanical, structural, surveys, etc. We are talking $1,000+ for inspections and those are paid whether you close on the property or not. Not to scare you, we just want to be sure it’s a top contending property.
4
Closing Date
This date is typically 30-45 days from the initial date of contract, depending on the market conditions.
5
Personal Property
All appliances that are permanently attached to the property such as a dishwasher will stay as a fixture. Houses do not automatically include refrigerator, washer or dryer and are considered personal property. Depending on market conditions, as well as the conditions of these specific appliances (refrigerator, washer, dryer), we may or may not ask for one, or all of them to be included in the sale.
6
Closing Costs
Closing costs and pre-paids (escrow, taxes, insurance) are additional expenses to consider. Please ask your lender what you can expect to pay here, as it varies by Buyer and purchase price. You can ask the Seller to pay a portion, or all of your closing costs, depending on market conditions, such as multiple offers. My recommendation will vary.
7
Home Warranty
Do you want the Seller to provide a 1-year (13-mo.) home warranty? Essentially it’s an insurance plan for your fixtures and appliances. You have the option of purchasing one on your own as well.
8
Additional Provisions
There may be other terms of the offer such as an expiration date, pre-negotiated repairs, potential appraisal contingencies, etc. This would all be dependent on the market and property conditions.
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By digitally signing this form you are providing with your express written consent to send you business and marketing communications via text messages (SMS), email, and by calls or prerecorded messages dialed by a natural person or by an automatic or automated telephone dialing system. This express written consent applies to each such email address or telephone number that you provide to us now or in the future and permits such communications regardless of their purpose, unless you opt out of SMS marketing communication when submitting this form. Consent not required to register. Message frequency varies, message and data rates may apply. Text STOP to cancel, call for help.
