Making the offer:
- We will need specific information from you on the property you're interested in and information on you.
- We'll use that information to create an offer for you filling in the information. We will then get the offer to the listing agent.
- We'll get the filled in offer form to you for you to review, sign and return to us.
- When we have the signed offer back from you,I will email it to the listing agent to present it.
- We wait for a response to see if they accepted the offer. Typically though the offer is countered.
- We'll decide our "Counter strategy" to determine if you wish to counter and what amount and terms.
INFORMATION NEEDED TO MAKE AN OFFER:
- Your full name and names you wish to appear on the offer
- Your current address
- Address of property
- Offering price,we can give advice if desired along with selling price of comparable properties
- Amount you wish to put down
- An estimated closing date
- Any contingencies (ways to back out if need be); inspection, appraisal, loan etc
- Occupancy date, generally at closing.
- Amount of the earnest money deposit
- How long do you want the offer good for? Usually a day or two so it's not hanging out there.
- Financing, with lender approval letter, or proof of cash
- Division of closing costs, we will be happy to assist with what is customary and what is possible, and can provide a net sheet as well
Email me the above and I'll put it together for you! email: firstname.lastname@example.org
When the offer is accepted:
- We verify the contract is valid and legally binding to all parties
- You will need to send us the Earnest money deposit for us to deposit into our escrow account. By Idaho law we must be able to depoist no later than next business from acceptance.(Unless otherwise specified in the contract.)
- INSPECTION: We are off and running! Generally, the first thing to do will be the inspection. You'll need to hire and pay for a property inspector which may be around $250 - $400. We'll coordinate a time to have you and the inspector meet at the home to inspect the property. Typically the inspection will take 3-4 hours as they'll check every part of the home. Most buyers will attend for a review from theinspecor. The seller is usually not there.
- INSPECTION ISSUES: Most homes will have some inspection issues. You will need to determine if you "Accept" the inspection and the condition of the home. If so then we proceed to the appraisal. If not we need to determine what you want the seller to "Fix" or repair so you are satisfied with the inspection. If there are issues there are several options: 1) Ask the seller for a price reduction and you assume the issues / repairs, 2) Have the seller correct the items in question so we can move on. 3) A combination of both, asking for a price reduction and have the seller fix some of the items in question. NOTE: The inspection results are not meant to renegotiate the offer and put the screws to the seller. It is meant to come to a fair solution to issues at hand.
- Appraisal: Once you are satisfied with the inspection we move on the the appraisal. The appraisal fee is paid as determined by the contract. A local appraiser is contacted, goes out and does the appraisal. It is a good idea to stay on top of your loan officer to prevent delays! You don't want the ball dropped here and end up with a delay. If the appraisal comes in at or above the agreed upon price you should be able to close without any issues. Just make sure you work closely with your lender to get them any items they need from you.
- What if the appraisal comes in low? We do not have this situation often, but it can happen. All lenders will base the loan off of the lower of the appraised value or sales price. So... if the home appraises for less than the agreed upon price the appraised value generally becomes the new sales price. SELLER IS UPSET: Obviously the seller will be upset they may not get the agreed upon price for the home. OPTIONS AT THIS POINT: 1) We do nothing and see if the seller will come down. Generally they will not just roll over and take the perceived loss. 2) Seller says, "No way" they are coming off agreed upon price. We will then need to determine if you wish to proceed and ask the appraiser to redo the appraisal if we can find other comparable homes that support the price (appraisers rarely change their stance though...). 3) Find somewhere in the middle to meet. If you do this though you will need to come up with those additional funds as the lender will ONLY LEND on appraised value.
We have a vested interest in getting you the best terms and lowest price for your home. Please feel free to call anytime to discuss any offer situation.
A few things to keep in mind
- Have a small earnest money deposit.
- Use contingencies. Contingencies are "way's out". In other words, if something goes wrong you want a way to back out of the transaction AND get your earnest money back.
- We'll guide you through the home buying process to make it as hassle free as possible.