Once a buyer has selected the best choice for their new home, it’s time to make an offer to the seller. The offer can only be made in writing by filling out a purchase agreement.
A purchase agreement is made up of the multiple legal documents that spell out all of terms of the purchase. The purchase agreement is written up by the buyers’ agent along with the buyers. Much of the wording on these forms is already supplied as standard language. But, there are several blanks to be filled in by the buyers’ agent, such as:
- The purchase price
- The date of the closing
- The amount of earnest money paid by the buyers to the sellers up front
- How the taxes will be paid
- Whether or not the buyers choose to conduct any inspections
- What type of financing the buyers intend to use (if any) to secure a mortgage
- If the buyers are requesting the sellers to pay any money toward the buyers’ closing costs
And much more.
Buyers should allow at least an hour for this appointment with their agent to make their decisions on these items and fill out all of the paper work. At this time, the buyers will need to provide a pre-approval letter from their lender and an earnest money check made out to the sellers’ real estate brokerage.
Presenting the offer to the sellers
Once all of the paper work has been filled out, the buyers’ agent contacts the sellers’ agent to request an appointment to present the purchase agreement to the sellers. The determination of that presentation is up to the sellers. The buyers’ agent would prefer to present the offer in person to the sellers, but sometimes the sellers request the offer to be faxed to their agent, so their agent can present to them without the buyers’ agent present.
Buyers’ Agent negotiating on buyers’ behalf
Regardless of how the offer is presented, once it is presented, the sellers have three options:
- They can accept everything as written
- They can reject everything as written
- They can accept some terms and make a “counter offer” on others
If there is a counter offer presented by the sellers and their agent, the buyers’ agent will then contact the buyers to discuss these items in dispute. From this point, the buyers have the same three options listed above to determine the outcome of the counter proposed items.
While the buyer agent is advising you, to help navigate this process, the buyer agents at Buyers Real Estate Group want you, the buyer, to be involved in every aspect of the purchase.
YOU, THE HOME BUYER, ARE THE DRIVER AND THE BUYER AGENT IS YOUR VEHICLE.
NOTE: “Unlike traditional agents who look out for the seller, a buyer broker acts as your advocate, helping you to find the home you want, then negotiating the lowest possible price.” MONEY MAGAZINE MAY 1995