To the
unprepared homebuyer, this could be an unnerving experience.
But since you've done your homework and completed Steps 1
through 3, you are ready! Your American United Lending
Partner is in place and ready to support you through the
negotiation process.
Let's Make
a Deal!
Once you
locate a property you are interested in buying immediately
contact your American United Lending Partner. They will make
sure that your Full Approval matches your offer and
that the terms of your offer will be acceptable to our
underwriters.
With that,
your home buying team will help you prepare a written
contract, which starts with your written proposal. This
proposal not only specifies price, but all the terms and
conditions of the purchase. For example, if the seller
agrees to help with $3,000 towards closing costs, this fact
needs to be included in the written offer and in the final
completed contract, or it may not happen at closing.
Your
home buying team will guide you through the purchase
agreement and any forms necessary to your closing. With your
American United Lending Partner as your team leader and your
realtor and attorney as your home buying team members, you
will be protected throughout the transaction. Your home
buying team is current on all state and local disclosure
laws, government requirements for special financing
programs, and filing provisions that may affect your
purchase.
After the
offer is prepared and signed, it will usually be presented
to the seller by your real estate agent and by the seller's
agent. You will need to include a small deposit, typically
$1,000, with your offer to show that you are serious.
Specifics
on the Offer
The
purchase offer, once submitted and accepted by both parties,
will become a binding sales contract known as the purchase
agreement. For this reason, your offer must include all the
important details necessary for the purchase of your home:
·
Address
and/or legal description of the property
·
Sale price
·
Terms of
your mortgage commitment
·
Estimated
date of closing
·
Amount of
earnest money deposit
·
Method by
which real estate taxes, rents, fuel, water bills, and
utilities are to be adjusted (prorated) between buyer and
seller
·
Provisions
about who will pay for title insurance, survey, termite
inspections and the like
·
Type of
deed to be given
·
Other
requirements such as attorney review, disclosure of
environmental hazards such as asbestos and lead paint
·
Provisions
for a walk-through of the property just before the closing
·
A time
limit for the expiration of the offer
·
Contingencies for the withdrawal of the offer
What are
Contingencies?
Contingencies are events that must occur in order for the
offer to be binding. For example, the offer may be
contingent upon a "satisfactory home inspection within two
weeks of the offer". Your attorney and your American United
Lending Partner can help you review some of the
contingencies you may want to include in your offer.
The Power
of a Pre-Approval
Remember,
your American United Full Approval means you received
an actual mortgage commitment for a specific dollar amount
even before you began looking for a home. This approval
gives you great negotiating power with the seller. The
seller knows you have cash in hand to close the deal and
they are assured the sale will go smoothly. If you selected
the right real estate partner they will know the power of
the Full Approval. Make sure they use it to your
advantage when negotiating a fair price!! If they treat it
like a pr-approval all will we lost.
Other
issues that may affect your negotiating power are the reason
the house is being sold, and the seller's time constraints.
For example, if the seller is relocating for employment he
may want to sell quickly. A vacant home represents a
substantial expense that may encourage a Seller to
negotiate. Other negotiating factors include divorce, death
of a family member, retirement or debt.
The
Seller's Counter Offer
The seller
may accept your first offer. If so, your preliminary
contract will go to your attorney for review.
If the
seller refuses your offer, they may simply discontinue the
bidding process or make you a counteroffer. It’s important
not to make a “low ball” offer that gives the seller the
impression that you’re not serious. They may not entertain
any more of your offers!!
The
counteroffer may be to the purchase price, or closing date,
or any other items in the offer. You are free to accept or
reject, or make another counter offer. It's all part of the
bargaining process, and your American United Lending Partner
will be available to give you some insight into the art of
making a deal.
Any
counter-offer does not become a binding contract until
either the seller or the buyer accepts the offer by signing
it.
Can I
Withdraw an Offer?
An offer
may be withdrawn right up to the time of acceptance.
However, you should check with your attorney. You do not
want to be sued for damages by the seller or lose your
deposit money.
It's a
Deal!
Congratulations…you
have just completed the 4 steps to successfully buying real
estate.
If you
would like to discuss the home buying process in person or
by phone, simply give us a call at 1-800-555-2035 and
a local representative will assist you. We look forward to
guiding you through the home buying process.
Click here to go
to step five in the home buying process
