Welcome back! This week we continue with our series, “Top FAQs for Home Buying” with questions surrounding the offer process. It is important to take note that this is when the skills of a professional REALTOR® will most certainly serve you best.
How many homes should I look at before submitting a purchase offer?
There is no magic number. Don’t feel pressured to purchase the first home you look at nor the 5th. If you aren’t finding the right home after your 10th viewing, then it’s a good sign to reevaluate your search criteria.
Giving your agent honest feedback following a home tour will help your realtor with finding properties that better match your wants and needs.
How much should I offer?
Although the purchase of any home is ultimately yours, it is important that you discuss the offer amount with your agent. Your agent should be familiar with the area in which you are purchasing as well as with any recent sales in the neighborhood. He/she will help you put together an offer that will ultimately impress the seller so that your offer is accepted.
What is an earnest money deposit?
An earnest money deposit is a show of good faith to the seller and is held in an escrow account by the title company. The deposit shows the seller that you are serious about purchasing their home. As a buyer, the deposit gives you time to arrange for financing (unless it is a cash offer) and the deposit is deducted from the closing costs at the end of the transaction.
How long does the seller have to respond to my offer?
That all depends, in general a seller will have 48 to 72 hours, depending on if your offer was submitted over a weekend. Your offer may be accepted, rejected, or countered. If your offer is rejected, you have the right to submit another offer. Your agent will help guide you through this part of the process and will work hard to protect your interests.
Besides a rejection, what other possible responses are there?
There are three others… The first is an accepted offer while the second is a counter offer. If your offer is countered, your agent will discuss possible options with you. You may accept the counter offer or you may counter back, this is all a part of the negotiation process and why it is so important that your agent has fierce negotiation skills. The third response is no response at all. If the seller doesn’t respond to your offer, there’s a good chance you may have insulted them with a lowball offer.
Although this was our third blog post of the series, can you believe there will be one more? Don’t miss our final installment next week when we cover FAQs once your offer has been accepted and you’re under contract. Catch up on the first two installments here:
Click here to read Top FAQs for Home Buying Part One
Click here to read Top FAQs for Home Buying Part Two
See you soon!