Offer to Purchase
When a buyer makes a decision to purchase your home they will complete an offer to purchase. It will be written by the buyers? agent and presented to you by myself. The offer will cover the areas of earnest money, down payment, financing, possession and closing, and most importantly, the price. You will be asked to accept the offer by signing the purchase agreement or to note desired changes and submit a counter-offer. You may, of course, reject the offer. It is usually better to prepare a counter proposal if the buyer is a qualified buyer rather that reject. Why? By countering the offer, you are able to let the buyers know what you will accept and it is in writing. A word of caution? if the offer is similar to you expectations you may want to accept the offer rather than give the buyers time to rethink their purchase decision.
Price is negotiable, as is earnest money, and closing date. Buyers may ask that you include the window coverings, porch swing, fireplace doors, and that certain appliances stay with the house. You can also negotiate contingencies such as ?contract is subject to buyer obtaining a satisfactory financing.? Negotiations may go back and forth, but once you accept and all parties have signed for the changes in the offer there is now a binding contract.
What is a Qualified Buyer?
A qualified buyer is one that has secured financing for their new home and is ready to buy. Many deals have fallen through because buyers were unable to secure financing. A buyer that is pre-qualified distinguishes themselves from those just looking and lets you know that they are serious about buying your home. If you have multiple offers, a pre-qualified candidate has the edge over the other non qualified offers.
A Low Ball Offer
As a home owner you take pride in your home. So when a buyer offers a price well below your asking price it can be a shock and make you angry. Sometimes the low ball is a ploy to find out exactly how low you are willing to go. A buyer that is insultingly under market value may have no real intention of buying. As the seller, you can choose to outright reject the offer and wait for a qualified buyer.