The Offer

What's a good offer price?

After selecting the home you want to make an offer on, our team will supply you with a market analysis that includes similar homes that have sold, expired, cancelled or are actively on the market.

The market analysis will help you to decide what kind of price to offer.

Other conditions to consider:

  • How long has the house been on the market?
  • What is the condition of the house?
  • Are there any other offers currently being considered?
  • Are you paying with cash, a conventional loan, va loan, fha, etc.?
  • Will your offer be contingent upon sale of another home?
  • How quickly can you close?
  • How much do you really want the house?
  • What can you afford?

 

How much should I offer in earnest money?

Average: 1% – 3%

Strategy: Where there’s weak demand in the marketplace for a particular kind of property, we have seen earnest money of up to 1% of the purchase price accepted by the sellers. On the flipside, where there is a strong demand in the marketplace, we have seen up to 3% or more demanded by the sellers.

The more the earnest money offered to the seller, the stronger and more desirable the offer appears.

What do I do with the earnest money check?

Our team will add it to the offer near the pre-approval letter.

The physical check will need to be dropped off where the sellers will be holding it in escrow. This could either be the title company or the brokerage. Our team will find out where the sellers will be holding it in escrow. We will also help check the credentials of the firm if we have not already done business with them.

Will I lose my earnest money check?

We strive to get you the best deal, which includes negotatiating the return of your earnest money for any reason. More likely, however, if you choose to not purchase the house due to findings during the inspection contingency (typically 10 days) or findings during the 10 day right of rescission (for properties with associations), or have applied for an FHA loan on a home who’s appraisal was less than the offer price, you will have your money refunded back to you. Beyond that point, failure to perform can lead to the loss of your earnest money. 

Seller paid closing costs - how much is average?
After making an offer, how many days could I potentially wait to hear back?

Typically, we hear back the same or next day. You may want to request a response deadline within your offer. 

They accepted the offer, now what?

Your earnest money check will need to be deposited within two days after the final acceptance date. The money is held in escrow until closing, or you request the money refunded. Once the check has cleared, the refund can come the same day. 

The Inspection

Should I get an inspection?

We advise that all clients get an inspection that includes radon testing, moisture, mold and, when applicable, well, septic, tree and soil.

How many days do I have to get an inspection performed?

The amount of time is negotiated with the offer – typical is 10 days. 

What is Radon and should I pay to test for it?

Radon is a colorless, odorless gas. It can lead to lung cancer. Any readings over 4.0 would be grounds for radon mitigation (roughly $1,500-$2,000 system installation that allows gas to vent up and out of the home). 

How much does an inspection cost and who pays for it?

Inspections vary from $350 – $600/$1,000+. Typical inspections on a single family home in Lakeville usually runs $400 for the home + $150 radon testing. 

How long before I get inspection results?

Inspection reports are typically offered the same or next day. Radon test results are a little different – radon tests take 48 hours to collect data and another 24 or so to analyze. Typically, inspectors will collect data prior to inspection and attempt to align the radon results with the inspeciton results. 

Radon test shows high levels Radon present. Now what?
What should I ask sellers to fix after receiving the full inspection report?

Negotiations

What inspection items do buyers expect sellers to fix?

Hazardous items, for example: leaking water, missing or broken smoke/carbon min. detectors, faulty wiring. Buyond the hazardous items, the estimate in time and money for fixing items found, is taken as a case by case basis. You will receive recommendations from Steve and his team but ultimately, you are always in control of the final offer and negotiations.

Done Negotiating, Offer Accepted – Now What?

Lock in the loan. Here's how...
What's an appraisal and why do i need one?
When do I hear back about the appraisal?

Closing

Closing Table