It’s Time to Make an Offer on a House!
Making an offer on a house is exciting and nerve wrecking at the same time! Most people focus much of their attention on offering prices, but a proposal to buy includes both the asking price as well as terms. Terms represent a large portion of the contract and should be carefully reviewed. In some cases, terms can represent thousands of dollars in additional value for buyers, or additional costs. It’s important to keep in mind that the list price on a house is typically determined by a comparative market analysis conducted by the listing Realtor.
Determining the amount of your offer is, in practice, dependent on the basic laws of supply and demand. If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then you might consider an offer below the asking price. Here’s where you should really think about your needs as a buyer. Maybe you need help with closing costs. In this such instance, you would want to consider offering a seller their asking price, and in return, ask them to help out with your buyer closing costs. You might not know exactly what to present in your offer, so a good, experienced Realtor will help you determine what is feasible.
How do you make an offer?
The first thing your Realtor will ask is for you to sign a buyer’s representation agreement. This simply states the duties and responsibilities of the Realtor to the buyer and vice versa. Without one, the Realtor will be working on the seller’s interest. Once the buyer’s representation agreement is complete, it’s time to concoct your offer! Your Realtor will write up the agreed upon offer on Texas regulated forms and present it to the listing Realtor. Here’s the hard part- waiting for that response from the owner. The owner might accept, reject, or make a counter-offer. Don’t get deterred by any of these responses, counter offers are extremely common. This process will continue until a price and terms are agreed upon that satisfies both the buyer and the seller which will land you your dream home!
When is it considered a contract?
It is officially considered a contract once all parties have agreed to the terms of the offer, all parties have signed the contract, the earnest money is collected, and the contract is executed by the Realtor. The home is now yours, and you can move on to the closing process.