Step 5.  Making an offer to buy and negotiating the offer

Finally, after a long search of Green Lake real estate listings, you are standing in front of the home that meets all or most of the items on your wish list. "Look at that view of that lake and all those joggers!" So what do you do now? This is where working with a Seattle realtor pays off and you don't even have to pay them a penny for their services (the seller pays their commission).

But first, are you sure this is the right home for you? Be careful of those free cookies, scented candles and bad soft jazz playing in the background. Step back for a minute and take an objective look at the home.

Still sure?

OK, let's make an offer on a home!

             

The offer process: the purchase and sale agreement, aka the sales contract
A buyer's offer to purchase a home is presented in the form of a Purchase and Sale Agreement (PSA). This is a five page legal document, the main elements of which are:

• Identification of the parties in the transaction, plus a legal description of the property.
• The offer price and method of payment (cash or loan). Also states the earnest money amount.
• States the type of deed and the condition of the title.
• Any attached contingency clauses.
• Includes the date of transfer of possession and title to the propertyto the buyer.

The buyer fills out the sales contract paperwork with the help of their agent. Do not let your agent dictate what goes on the paperwork. Definitely listen to their advice, but all final decisions should be yours to make! If you are not sure what you are signing, have your agent clearly explain to you what the paperwork means. Ask your real estate agent to go through the paperwork BEFORE you start signing. The agent will then fax the filled out documents to the listing agent who then presents the offer to the seller. The offer must be in writing. Verbal agreements are not legal for real estate transactions in the state of Washington.

The initial offer from the buyer will have a deadline within which time the seller can respond to the offer. Once that period has elapsed, and no action has been taken by the seller, the offer is considered no longer valid. Any earnest money would then be returned to the buyer. However if the seller accepts the offer or comes back with a counter offer, the negoriation process continues. See links at bottom of this page for more information on negotiating.

How much should I offer on a home?

You will sit down with your agent and discuss and agree on an offer price that will be presented to the seller. The price you offer will depend on a number of factors, for example:
• Is it a slow buyer's market or a hot seller's market?
• How long has the home been on the market?
• Is the home listed at a fair price?
• How bad do you want that home?
• What condition is the property in?

Obviously, you will be looking to pay as little as possible for the home while the seller will be looking for the opposite. Your Green lake real estate agent should advise you on what to offer but the final decision should always be yours to make.

Unless you are buying in a hot seller's market, you should make an offer below the listing price, but not too low. A low-ball offer will just insult the seller and you will probably be ignored. One strategy would be to make an offer that is 5% below the listing price. This might lead to a couple of rounds of back and forth negotiations and you may end up paying say, 98% of the listing price.

When making an offer, don't forget to check off items that you want to be included in the offer such as the washer and dryer, the fridge or the hot tub. The seller may not want to include these items but they could be used in negotiating the final agreeded to price.


Please click here for these items related to Making and Negotiating Offers:

Contingency Clauses
What happens after the seller receives my offer to purchase?


Please click here for these items:

Counter-offers and staying sane
Inspecting a home
And finally..... we have mutual acceptance


Continue to Buyer's step 6.  Closing and Escrow

Return to Buyer's step 4.  Find my new home