We started our short blog series last week with Steps to Successful Home Buying. Here are the next few steps. Be sure to reach out to us when you are ready to purchase a home!
(4.) Tour homes: Once you have determined which homes you would like to visit, your Realtor® will schedule appointments and accompany you to see the homes that interest you. As you begin to tour some homes your desired criteria may change. Keep your Realtor® informed as your criteria changes to make sure they are still looking for what will meet your needs. The process can continue until you find the home that best meets your needs.
(5.) Make an offer: Your Realtor® will find comparable homes that have sold to determine what a fair market price would be for the home you want to purchase. With this information, you and your Realtor® will determine what you would like to offer the seller for their home. Your Realtor® provides all the necessary documents for the offer, you review them together and initial and sign them. Your Realtor® then presents them to the listing agent and you wait for the seller’s response.
(6.) Negotiations: We may spend an undetermined amount of time with “counter-offers” in order to come to an agreement. The seller may respond with different terms or sales price. You may respond as well and the conversation will continue until there is an agreement or until it is determined that you can not reach an agreement. Your Realtor® will serve as your liaison, you will not have to communicate directly with the listing agent or the seller.
(7.) Executed Contract: When an agreement is reached and all parties have signed and initialed the contract, it becomes a binding agreement. Earnest Money and Option Fee are delivered at this time. Customarily, the Earnest Money is 1% of the sales price and the Option Fee can range from $25 to $100.
(8.) Option Period: This is a time period agreed upon in the contract, usually 7 to 10 days, in which the buyer can terminate the contract if deemed necessary. It is highly recommended that a professional Home Inspection and Termite Inspection are done during this time frame. If needed, repairs or seller concessions can be negotiated after the inspections for specific items indicated in the inspection reports. Your Realtor® can advise you in this area and will provide the necessary documents.