So, you’ve found it – that perfect house that fits all your criteria and your price range and you’re ready to make an offer! Now, you and your agent can decide on the most appropriate offer. Sometimes it is OK to make an offer that is lower than the asking price, but if you are in a hurry to buy, your heart is set on a house, or you know there are other offers on the table, you may want to offer the full asking price. There are a variety of factors that will determine your offer. Your agent can advise and help you decide, write up an offer and present it to the seller’s agent or the seller with your terms and conditions. At this point you will want to make a down payment called earnest money.
Once you’ve determined your offering price you’ll need to decide on the size of deposit to make along with your offer. This earnest money deposit should show the seller you are serious, but not so large that you are placing significant funds at risk. Sometimes negotiations can take a while and your funds are tied up during that time. It will depend, just like your offer, on the kind of market you are in. A professional agent will be able to advise and help you decide the size of the deposit that is appropriate.
Now that you have sent your offer and your earnest money deposit you will begin the negotiation stage with the seller or their agent. Generally, your agent will handle this phase and advise you of any demands the seller has rejected or the demands they may be asking of you. Once your negotiation is complete and your final offer is accepted you will enter into the next phase, which is the escrow phase.