7. Making the Offer
Step 7 of 10
Your Realtor Association of Acadiana (RAA), working with legal counsel, have developed forms that are appropriate for realty transactions in the Acadiana Area ( Abbeville, Arnaudville, Breaux Bridge, Broussard, Carencro, Crowley, Duson, Eunice, Kaplan, Lafayette, New Iberia, Opelousas, Rayne, Scott, Youngsville). Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. Your REALTORS® can explain the general contracting process in your community as well as his or her role.
While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for home buyers — or additional costs. Terms are extremely important and should be carefully reviewed.
You sometimes hear that the amount of your offer should be x percent below the home seller’s asking price or y percent less than you’re really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many home buyers are competing for homes, then home sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.
How do you make an offer?
The process of making offers varies around the country. In a typical situation, you will complete an offer that your REALTOR® will present to the owner and the owner’s representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.
Because counter-offers are common (any change in an offer can be considered a “counter-offer”), it’s important for home buyers to remain in close contact with thier REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.
How many inspections?
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections.
Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property’s mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.
For more information:
- The Bottom Line on Contract Negotiation
- How to Win the Bidding Wars
- The Basics of Making an Offer
- Negotiating to Yes
- Terms and Conditions
- Home Inspections Avert Future Headaches
- Hiring a Home Inspector
Next: Getting Insurance