When you find the perfect home that you and your partner would like to purchase, you will begin the process by making a purchase offer. The offer generally includes how much you are offering to pay for the home, contingencies to the purchase such as inspections or financing, and any conveyances you would like included such as furnishings or other assets. It may also include a good faith deposit, generally $500 or 5 percent of the home’s value, to show that you are serious about purchasing the home.
Before making your offer, there are some things that you should consider.
1. Find out why they are selling. If they are selling because they have to make a move for a job change or some other reason that makes them motivated to sell the home quickly they may be willing to negotiate on the asking price.
2. Do not make an offer that is a lot lower than the asking price if it is a fairly priced. This could insult the seller and make him or her unwilling to negotiate any further with you. If the home is fairly priced, you may consider offering a slightly lower amount if you are not buying in a fast paced market where you stand to lose out on the home altogether.
3. Do not show the seller that you are enthusiastic about buying the home. Doing so could make the sellers think that you want it bad enough to pay a higher price than what you are offering. While this may open negotiations, the seller may be less inclined to lower the price or offer additional perks, such as paying closing costs or making a repair that you would like.
4. Be sure to include logical time frames for obtaining financing, inspections and other contingencies that you can logically meet. For example, while you may believe that you can obtain financing within two weeks, there is no guarantee that it will happen. You may end up applying at a different mortgage company and miss the deadline. In that case, the agreement can be voided for noncompliance and the seller is free to sell the home to someone else. The inspection can also give you a better picture of the property’s condition. If the inspection results show that the roofing has some damages and need roofing services, you may negotiate with the seller to shoulder the fees of roofing contractors or decrease their asking price.
The seller has the option of accepting your offer, making a counter offer with or without changes, or rejecting your offer altogether. Keep in mind that just because your offer may be the first, the highest or the best offer the seller has received, he or she has no obligation to accept it. In a few states, the seller is required to accept an offer or take it off the market if the offer is for full price with no contingencies. Generally, sellers have the authority to accept the offer that they prefer.
If the seller rejects your offer altogether, you have the option of submitting another offer. In that case, it would be wise to have your real estate agent, if you have one, find out why the offer was rejected in the first place. That knowledge will give you a base for making a better offer that may be accepted.
If the seller accepts your offer and all parties sign, a ‘meeting of the minds’ takes place and the contract becomes legally binding. This is why it is important to include any contingencies and conveyances that you would like included. Unless the seller is willing to negotiate and modify the purchase agreement, you will be legally liable to follow through on the purchase on the terms submitted in the offer.
If you are considering selling your home, you should consult with an LGBT real estate agent at GayRealEstate.com. He or she is in the best position to know and discuss the local market with you and guide you through the process of buying a home. In addition, an LGBT real estate agent has the knowledge to guide you through the process of making a purchase offer.
