Among the first things you should address if you enter the real estate market and are very fresh to the scene is who delivers your offer to the seller.
First stage is being qualified for a mortgage. The second step is to create the real offer; the third one is to present it to the vendor.
That is where things may get complicated. There are several results for you and this is a comprehensive process.
We will thus discuss today how to create the greatest potential offer for the seller, cover some fundamental terms on the delivery process itself, and identify the main actors in the game.
Should you have identified the ideal place for residence, you most definitely know the problems we will be discussing today.
Please read on and catch up on any terms you might have understated.
Real Estate Agent Delivers The Offer To The Seller
You should start the process once you have your mortgage pre-approval letter and have properly written the real estate offer. though, Who delivers your offer to the seller?
The most likely situation is one that you have worked on this with your agent. Once you have included the personal touch, the real estate agent should present the offer to the seller’s listing agent together with all the supporting documentation.
Remember this since we will be circling back to it in one minute.
There are various ways the delivery process could turn out. However, in 80% of cases the buyer’s agent presents your offer and supporting documentation to the seller.
Face-to–personal engagement is ideal if the distance separating your agent and the listing agent of the seller allows it. It reveals a dosage of will that you are prepared to pay for the house. You want this transaction to not become a waiting game running for months on end.
One can accomplish it by email as well. Of course, we live in a digital age that even the most crucial issues are managed by text messages or phone calls.
Should a buyer’s agent enter the game, they can present the real estate offer on your behalf. However, if you work alone or as a real estate agent by trade, kindly forward the offer straight to the listing agent.
What happens should there be strong competition for the suggested purchase price?
Should that be the case, your listing agent will phone, text, or arrange a meeting with the seller’s agent in order to expedite completing the paperwork.
What If You Are Working With The Same Agent?
In real estate, that describes a “dual agency” scenario.
Let’s straighten the record on this:
Working with an agent who delivers the documentation is somewhat typical, as we mentioned; still, there is always a risk that the buyer’s agent and the seller’s agency will turn out to be the same agents. Since the agent should remain objective, most of the time the described real estate offer procedure might become a complex matter.
Conversely, a single agency is the situation you are familiar with: it is when one agent represents your best interest while the seller’s listing agent represents the other side.
Avoiding dual agency can seem difficult if:
- The agent is hosting an open house
- Buyers find a property through online listings
- It’s a new construction property
Is Dual Agency Illegal?
Indeed, in the following states— Kansas, Florida, Maryland, Alaska, Colorado, Alaska, Texas, Vermont, and Wyoming—the dual agency is prohibited. Regarding other states, there are several rules controlling this matter.
Real Estate Agents Present The Offer – Now What?
There are three likely results once you have made the offer to the seller and it has been effectively shown by either the agent or yourself. We will go over these more fully here.
The results could be rejection, the seller making a counteroffer, or the representative of the seller contacting your agency to formally say you acquired the house.
The Seller’s Agent Calls With Good News
The ideal situation would be for the agent representing the seller to get in touch with you right away upon reviewing your offer and provide the positive news.
Congratulation if your phone rings soon; you have the house. You are one step closer to moving in, but you are not 100% done with the paperwork yet; your offer now serves as an official purchase agreement.
Especially if you are purchasing a free-standing property, you will most likely be exempt to send in a deposit, conduct a complete home inspection, have your house appraised, and finalize on the loan closure of the deal.
One should not become overly fixated on the positive aspects of the residence. You may only find certain problems with your dream house later on. Ask about unattached furniture, appliances, or old carpet that has to be replaced, for instance.
Take your time deciding on the house. Sometimes “minor problems” ignored beneath the carpet turn out to be major ones.
The Seller Raises A Counter Offer: How To Respond?
Your main offer seemed to have left the seller with less than ideal impression. They most likely reviewed your suggested amount of money and are now trying to charge extra.
A counter-offer results when neither the seller nor their agent find the terms of the attached offer satisfactory. And as we mentioned, your offer to the seller sometimes comprises a suggested purchase price. Should their dissatisfaction with it, the seller can wish to increase the price instead of immediately taking your offer.
Does the number of counteroffers between buyers and sellers have any legal limit?
The count of counter-offers a buyer and seller can make on a certain property is unlimited. Both sides might alternate estimating and modifying the terms of the sale. Thus, the outcome is
Either the seller will take the offer and decide on a selling price, or these real estate deals will pass and your offer to the seller will not be accepted.
The Buyer’s Agent Receives Bad News
Sadly, there is no assurance for a good business arrangement. The terrible news should also be ready for you.
Under this scenario, the buyer’s agent or the buyer themselves will get a brief call from the seller, or real estate agency, outlining that the offer was turned down. The excuses differ. They have bearing on your own financial statement, taxes and sales fees, and so forth.
The seller won’t extend a counter offer if you two cannot agree.
The Basic Points In A Buyer’s Offer
After we have brought you closer to the whole make-an-offer process, we would want to note some fundamental observations about the document itself.
Relatedly, a customized offer submission form is a tool particularly helpful to real estate agents. Like a sort of brief biography, the form gathers important information about the homebuyer.
Just as much of a factor as choosing Who delivers your offer to the seller is what you include in it. Your offer should address these key points.
Property Address And Information
Naturally, identifying information about the property should be first included in your purchase agreement. You should also include the agents, the seller, and yourself as all those engaged in the transaction.
Purchase Price
The suggested price is fundamental component of this deal. Regarding the price you are ready to spend for the house you would want to purchase, be very clear. Clearly state who should pay the closing expenses as well.
Deposit Money
Apart from the cost you are ready to pay for your prospective house, you also have to indicate the amount you would be ready to deposit—that is, your earnest payment.
Warranties
Usually, any major purchase comes with a guarantee provided by the vendor that would guard the consumer. Additionally on the real estate scene is a “warranty of title.” The seller guarantees that the property is clear of liens and mortgages and that she has the right to transfer ownership of it.
Important Dates
You have to add significant dates if you want a contract recognized. Among the factors deemed more crucial than others are the closing date and the seller’s time limit to react before your offer runs off. That helps to straighten things out right away and without delay.
Supporting Documentation
Your offer consists naturally in supporting documentation. That can include pre-approval on mortgages, buyer’s financial statement, and a letter to the seller.
Your supporting records have to show that, right at purchase, you are financially steady.
Sale Contingency
A so-called selling contingency is any obvious problem that has to be fixed if the deal is to proceed. Before the purchase or selling your present house, the purchasers should include any contingency linked to the sale, such finance, thorough house inspections – essential for buying free-standing property – and appraisal.
Other Important Terms You Should Know
If you are new to this, the meanings of the following terminology could help you grasp the full procedure more precisely. Let us thus enumerate the most crucial ones here:
- A real estate agent extends a verbal offer. Unlike the written word, it is unacceptable in real estate transactions; yet, some people prefer to hear the verbal offer ahead to accepting a contract with the listing agent.
- Agents licensed and representing the sellers, market the property, and interact with the possible buyer are known as condo listing agents.
- A pre-approved mortgage letter is a documentation proving your loan pre-approval. A pre-approval puts you one step closer to purchasing your house. It can, however, get somewhat perplexing. Sometimes a significant change in your financial status will cause your mortgage pre-approval letter to be declined.
- One accurate record of your assets and debt is your personal financial statement. In a similar vein, a bank account statement shows the financial activity during a given period.
- Additionally significant is a real estate attorney. Their responsibility as professional lawyers is to carefully look over and check all the records before any significant payment plans are decided upon.
Final Thoughts
We can argue that on this issue we effectively “closed the deal.”
To restate, then, who delivers your offer to the seller?
Potential purchasers’ offer is practically given by the real estate agent. This is not clear, though. While this is a general rule, the real estate industry can present different circumstances. This means you might be heading at this alone.
You might even find yourself in circumstances whereby the buyer’s agent represents the seller; but, you should avoid leaning toward this choice since it might lead to problems.
From there, one of three things will happen: either your offer will be accepted or declined, or the seller will try to make you a counter-offer, thereby negotiating a higher purchase price.