Making an Offer
Article last updated July 2023
With your pre-approval and proof of funds in place, once you have found a home you like, the next step is to make an offer. Your Realtor will write up a purchase contract and send it to the seller. Here are a few areas we can negotiate.
The Price
What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity, and the urgency of the seller. While some buyers want to make a low offer just to see if the seller accepts, this often isn’t a smart choice, because the seller may be insulted and decide not to negotiate at all.
The Move-in Date
If you can be flexible on the possession date, the seller will be more apt to choose your offer over others.
Additional Property
Often, the seller plans on leaving major appliances in the home; however, which items stay or go is often a matter of negotiation.
Typically, you will not be present at the offer presentation – we will present it to the listing agent and/or seller. The seller will then do one of the following: accept the offer, reject the offer, or counter the offer with changes.
By far the most common is the counteroffer. In these cases, your Realtor’s experience and negotiating skills become powerful in representing your best interests.
When a counteroffer is presented, you and I will work together to review each specific area of it, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf.
Earnest Money Deposit
Once the offer is accepted, the buyer has three business days to initiate earnest money deposit (EMD). Typically 3% of purchase price. It’s important to note that if you back out of the transaction for a reason not accounted for in the purchase contract, the seller has the ability to keep your EMD.
This is where it is important to understand how the inclusion or waiving of contract contingencies can affect your ability to back out of a contract with your EMD returned to you.
About the Author
Montana Gabrielle Hooks is a SF Bay Area Realtor in the East Bay. Local entrepreneurship, playing bass guitar and singing live karaoke are a few of her favorite things. She serves on the Young Realtists Division, Oakland board is a member of the Associated Real Property Brokers. Follow her on Instagram or learn more about her on her website.
