Hiring a qualified real estate agent puts you in the best negotiating position possible to put your home on the market prior to finding the new home that you want. Once you find the perfect new home and have placed an offer, that offer will be “contingent” on the sale of your current home. Buyers who are in this position may not have as much negotiating power as another buyer whose home has sold, or at least has accepted an offer. Sellers may hesitate to accept an offer on a contingent buyer because there are too many things that need to happen prior to finalizing the sale, however, these are all dependent upon the situation and the buyer.
My job is to call the listing agent on your behalf and set an appointment with the seller to present your offer. I will be there to negotiate in your best interest and explain the details of your offer.
If you make an offer that is below the asking price, the seller has three options. They can accept your lower offer, counter your offer, or reject your offer outright. It is important to keep in mind that there may be other buyers who are interested in the same home. If those buyers happen to write an offer at the same time you do, the seller will have multiple offers to compare. Usually, there are many aspects to consider for each offer, but ultimately, the seller will accept the offer that is the best and most complete. In an active real estate market, homes typically sell at or near the list price. In hot markets, there are usually multiple buyers competing for the same home, which can sometimes drive up the final sales price beyond the original listing price. My job as a real estate professional is to help you plan a strategy based on current real estate market conditions in our local area.
When you make an offer on a home, you will be expected to show good faith by including an earnest money deposit. The deposit is a sign that you are serious about the offer on the home.
Upon a mutually accepted offer between the buyer and seller, the earnest money is deposited into a trust account of an escrow company. The deposit is a credit to the buyer and becomes part of the purchase expense.
This is where having a trusted real estate expert is critical. Real estate contracts are intricate, legal instruments and the process can be very complicated. It is rare for the buyer to lose their interest money. If a transaction falls apart, it is most often associated with circumstances beyond the buyer’s control. However, if the buyer willfully decides to rescind their offer and has no legal reasoning to do so, then the seller has a right to retain the earnest money.
Most lenders require the cost of the appraisal and the credit report at the time of your loan application. Those costs, however, are credited to your closing costs at the time of closing.