Step 4: Make an offer on a home.
Once you have found a home that you hope to buy and are ready to make an offer, your real estate agent will represent you in drafting a reasonable offer and presenting the offer to the seller’s agent. It is important to remember that while you alone determine the price you are prepared to offer, your agent can provide expert advice to adequately protect your investment and interests in the terms, conditions, contingencies and deadlines included in your offer.
The offer is legally binding. Remember that your offer becomes a legally binding contract once signed by Seller(s) and you the Buyer(s.)
The seller can accept, reject or counteroffer.
The seller has the option to accept your offer, reject your offer or make a counteroffer which modifies some or all of the conditions or terms of your offer. This negotiation can alternate back and forth several times before an agreement is reached and a contract is signed by both parties that finalizes the terms and conditions of the transaction. At this point, the legal ability of the seller to entertain other offers ends.
Meeting contingency dates.
Timing and deadlines are very important in real estate transactions. Once your offer is accepted and there is a preliminary contract on the home purchase, you should make sure to allow sufficient time to apply for and obtain mortgage financing, to schedule the closing and the home inspection of the property, and to negotiate the details of the final contract known as the Purchase and Sale Agreement between you and the seller.