Yay! You’ve found the perfect home and want to put in an offer. In today’s market we need to put your offer in asap; ideally within a few hours. There are a few things to determine when making an offer.
Offer price: What price do you want to offer for the home? I will do a Comparative Market Analysis (also known as a CMA) for you to determine what the market value is of the home you are interested in. The CMA tells us about the sale to list price in the neighborhood and whether you should expect to pay below asking price, asking price, or above asking price based on today’s market.
Initial Offer: Don’t expect to pay your initial offer price, as it’s rare for a seller to accept your initial offer without some negotiating back and forth. That’s why it’s called an initial offer. In addition to deciding what offer you want to put in to start, we need you to decide now how much you’re willing to pay for this property and what your walk away price is.
Closing date: Closing typically takes place roughly 30-60 days from contract acceptance. This does vary with each situation and based on your financing; some lenders need more time than others. If you’re paying 100% cash you can often close faster than if you’re getting a loan.
Due Diligence and Earnest money: How much due diligence and earnest money are you comfortable putting down on this property? There is not a “typical” amount and there is a difference between the two. Due diligence in NC is an amount agreed upon that you give to the seller for you to be able to fully investigate the property in return. It also serves as further evidence of your sincere interest in pursuing the property. This fee is nonrefundable unless the seller breaches contract, but is credited towards the purchase at closing.
Earnest money is normally much larger than the due diligence fee. It protects the seller and helps ensure the buyer is in “earnest” about purchasing their property. The money can be refunded if the buyer cancels the contract within the due diligence period for any or no reason at all. This fee is also credited towards the purchase at closing.
Closing cost credits: Do you want to ask for any credits for closing costs which would go towards the amount of closing cost fees you have to pay for on top of your down payment?
As long as it’s within the due diligence period, you can cancel for any or no reason and only forfeit your due diligence fee.
Want to review the contract in advance?
Click here for a sample copy of the Offer to Purchase Contract for NC
Patience is now the name of the game once an offer has been submitted!