Make an Offer
What all is involved and what should you expect?
01
Offer Price
My team and I will help you determine the property’s fair market value based upon comparable sales and current market conditions.
02
Escrow deposit
Usually 1-2% of the purchase price.
What is the Escrow Deposit?
The escrow deposit is also known as “The Good Faith Deposit.” It is typically 2-3% of the purchase price that you put down upfront to show the seller you are serious about the purchase. The higher the escrow, the more attractive the offer is to the seller. You also have the choice of splitting the deposit Into two separate payments
Where does it go?
As soon as we have an executed contract, you have approximately 5 days to get the Escrow Deposit to the office where It will be held, which Is typically the office of the seller’s agent. They will hold it up until closing. the deposit is counted towards your total balance due at closing.
You can submit your escrow deposit by check, cashier’s check, or wire transfer.
03
Financing amount
One of the biggest hurdles homebuyers face is saving for a down payment. As you’re budgeting and planning for your home purchase, you’ll want to understand how much you’ll need to put down and how long it will take you to get there. The process may actually move faster than you think.
Using data from the U.S. Department of Housing and Urban Development (HUD) and Apartment List, we can estimate how long it might take someone earning the median income and paying the median rent to save up for a down payment on a median-priced home. Since saving for a down payment can be a great time to practice budgeting for housing costs, this estimate also uses the concept that a household should not pay more than 28% of their total income on monthly housing expenses.
04
Inspection
Typically the contingency period is 10 to 15 days unless otherwise stated on the contract, to perform inspections on the home and terminate or renegotiate the contract if the inspection comes back unacceptable. More on this topic is covered in step 5.
05
Due Diligence
During this time, we will ensure that the home has clean title, review HOA documents, validate you can obtain home-owners or renters insurance, conduct surveys, review leases and anything else that we might need to input in to your contract. These items are typically wrapped up with in a 12 to 24 day time period.
06
Closing date
If getting a mortgage, this is typically 30-45 days from acceptance of the offer. This will be the day the keys are handed over, and all paperwork is signed!.