Make An Offer

Deciding to make an offer may be the easy part, while determining the right price is often more challenging. Many factors need to be considered when arriving at a fair price. And remember, price isn't the only important element: sellers also want to know about closing dates, deposit amounts (both 1st and 2nd), and any contingencies.

• How set are you on having your offer accepted?
• Is this home's price higher than your original budget?
• How much room do you want to leave to negotiate?
• Are you bottom fishing?
• Will the home appraise for the price you offer?

Who handles the paperwork? Typically, the state or area has a norm for who submits the initial offer as a written or verbal proposal. Once both parties agree on price and terms, again there is a norm who prepares the formal Purchase Agreement. This comprehensive document includes all critical details: price, closing dates, deposit deadlines, inspection timelines, and loan application deadlines. Remember that offers aren't open-ended most sellers expect a response within a standard timeframe, usually about 3 days.

An offer kicks off the negotiation process. Your agent submits the offer, and the seller may accept it as-is, reject it outright, or most commonly, respond with a counter offer. This counter might adjust the price, terms, or contingencies. The negotiation process can vary dramatically—sometimes reaching an amicable agreement quickly, while other times involving prolonged back-and-forth as both parties hold firm. This can create undue pressure, especially when neither party wants to kill the deal. A bidding auction is the exception where the standard negotiation process doesn't apply. Remember: negotiations are between the realtors. You do not negotiate directly with the sellers.

Contingencies protect buyers but can weaken offers in competitive markets. The most common contingencies are mortgage, appraisal, and home inspection. A mortgage contingency allows you to back out if your financing falls through, while an appraisal contingency lets you renegotiate if the home appraises below the offered price. A home inspection contingency gives you the opportunity to request repairs or adjustments based on discovered issues. In today's fast-moving market, some buyers are waiving these contingencies to make their offers more attractive to sellers. This strategy can help win bidding wars but significantly increases your risk. I can help you weigh the pros and cons of including or waiving contingencies based on your specific situation and risk tolerance.

Once negotiations conclude successfully, both parties finalize the Purchase Agreement—a legally binding contract that governs the entire transaction. Before signing, you must thoroughly understand each section and clause, as this document will protect your interests throughout the purchase process. I will carefully review the agreement with you, explaining important details and potential implications. In New Jersey and many other areas, the process then transitions to attorney review, where legal professionals will handle the remaining paperwork and guide you through to closing day.