Engel Volkers - Naples - Flipbook - Page 47
Making the o昀昀er
Based on your research notes, finances and the properties
you've viewed, you've finally found the home that meets your
criteria. You're ready to make an offer. An offer includes the
price you would like to pay for the home in question. How
much you will offer could depend on finances, comparative
prices of other homes in the market, as well as private
property and appliances to include in the sale.
The offer also includes an earnest money check or good faith
deposit, which is an amount of money that demonstrates your
commitment to the property. A good faith deposit is not the
same as a down payment, which is considerably more. The
amount of the deposit might be between one and three
percent of the purchase price and is usually held with the
Buyer Agent's brokerage or a third party which might include
an escrow service or title company. If the transaction is not
completed due to no contingency failure on the part of the
buyer, the deposit should be returned.
Also in the offer are items in the house, including appliances
that would be part of the sale and repairs you would require
the seller to make, prior to the closing. Dates should also be
mentioned in the offer including the closing date and move-in
date. Fees associated with the sale and who will be responsible
for each, should be determined. The offer will also declare
what the consequences would be as a result of a breach
of contract.
Contingencies help offer protection on the way toward
finalizing a deal. While a seller could accept a competing offer
without contingencies and a speedier process, you should
consider certain risks. For example, you can ensure that a
contract could be finalized contingent upon receiving written
loan approval, and that you can cover the cost of the purchase.
You can also make the deal contingent on successful
inspection results and the completion of any major repairs or
deductions equal to the value of those repairs. If you own a
home and need to sell it prior to purchasing a new home, the
purchase can be contingent on the successful sale of your
previous home. Deadlines should be assigned to each
contingency.
The closing
This is the process that takes places during a meeting of the
parties involved in which the transaction is completed and the
title of the property is passed from seller to new owner. Before
the closing, the buyer conducts a final walk-through of the
home to make sure that the property is as it was when you
viewed it and that all repairs that may have been stipulated in
the offer have been completed to satisfaction. During the
closing, paperwork that has been prepared by all parties
involved, including the agents, the bank providing the
mortgage, attorneys and title companies, are signed.
E N G E L & VÖ L K E R S | B U Y E R & S E L L E R G U I D E
47
