Engel Volkers - Sun Valley - Flipbook - Page 43
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
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.
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