Making the Offer ...and Acceptance!

Offer & Acceptance

How Much Should We Offer?

“How does the asking price compare with the area market values, based on recent sales of comparable houses in the area?

To answer that question and before we’ll write an “Offer to Purchase”, I’ll prepare a "Buyer’s Comparative Market Analysis" (CMA) on the property. This report reviews prices of comparable homes that are currently on the market, that are currently under contract, and that have closed (sold) in the past several months. From studying the recent past, we can see trending of prices in the neighborhood and can then project what a “reasonable offer” might be, but please remember the true value of a property at any point in time is the amount that a qualified buyer is willing to pay.

The Process

One written, the Offer to Purchase is presented to the Seller (usually by the Seller's agent) and either accepted, rejected or a counter offer is given. If the Seller counters, the original offer is no longer on the table and you get to decide whether to then accept the seller's counter, offer a different amount or simply walk away and continue the search. This process is generally accomplished in several telephone calls back and forth but only when all parties agree in writing to the price and terms do we have acceptance. Once all parties have signed and initialed any changes, the offer becomes a binding contract on all parties;  the home is removed from the active market,  the clock starts running for inspections and mortgage commitment to be obtained.

They Accepted - Now What?

Well, we found your dream house! Congratulations are in order but there’s no time to stop to celebrate yet. We have work to do!

A LOT happens after the contract is accepted. My role can be compared to the director of an orchestra. Just as he keeps everyone on the same page, in tempo and moving forward from the intro to the conclusion – so it is that I’m a maestro, making sure that inspections are done in a timely fashion, that items needed are received by the lender, coordinating the work of the escrow agent, the lender and you so you all get to the same place at the same time.

Sometimes I’m traffic cop; sometimes counselor, always seeing that your needs are met and that you fully understand each step of the process.

How Will We know If There are Problems?

Buying a house is a major investment so before making an offer, you should be fairly confident that you are aware of any major problems. You should do a thorough visual inspection to the best of your ability and ask questions about condition of the basic systems. You should also review the required Ohio Property Disclosure provided by the sellers. (Sellers can be held liable if they fail to tell the buyer of defects they know of in the house.)

I always recommend that we ask the seller to provide us with a Home Warranty and that our Offer to Purchase be contingent on an acceptable Home Inspection by a qualified, certified ASHI Home Inspector, an inspection for wood-boring insects and a radon inspection. These three inspections will provide you information to either renegotiate or terminate a contract if undisclosed (or unknown) problems are found. Additional inspections may be needed if the property has a well or septic system. Inspections are generally completed within ten (10) days of acceptance of contract and are paid by the buyer.