Information for Home Buyers Who Are Ready to Prepare an Offer to Purchase a Home
While we may already have discussed the structure of the purchase proposal, I will need to have answers to specific questions. Once the Buyer makes a decision to purchase a particular home I will ask:
- How much do you want to pay for the house? In other words, what is the proposed sales price?
- How much earnest money do you want to put down?
- Will this be a cash deal?
- If not, what kind of mortgage will you have (conventional, FHA, VA)?
- How much money will you be borrowing and how much will you be putting down?
- What will be the time period for paying back the mortgage note (15 years or 30 years)?
- What will your interest rate be?
- Will we be asking the seller for special financing terms?
- When do you want to close?
- When do you want the contract to take effect?
- On what date do you want the offer to expire?
- What will we be asking the seller to include or exclude?
- Will you want owner’s title insurance?
- Will you want a pin stake survey?
- Will you want a home warranty on the property?
- If so, which product do you want and on what terms?
I then prepare contract documents for your signature. At this time I will also use the Lender’s Good Faith Estimate to estimate the costs of buying the home, so that the buyer will have a reasonable expectation of their closing expenses. While I am preparing these documents, the buyer must do the following:
- write a check for earnest money made payable to Coldwell Banker Select
- sign the disclosure documents, including a lead paint disclosure if the house was built prior to 1978
- sign corporate addenda, if applicable
- sign forms indicating you understand that you should get your home inspected
- sign a form indicating that you understand Coldwell Banker Select’s relationship with the Executives’ Title Company
- sign forms indicating
- the name and phone number of your insurance agent
- the name and phone number of your real estate attorney
- the name of your professional engineer or home inspector
- the name of your termite inspection company
- make a copy of a letter of pre-qualificaiton by a mortgage lender OR a letter from your financial institution showing proof of funds so that the sellers will know that you are a serious buyer with the financial ability to purchase their home
- fill out a form providing the seller with some information about you so that they will know the degree of risk involved in taking their home off the market by executing a contract with you
After collecting all the signed documents, I will make copies for the buyer, the seller, myself, and the listing associate. Then I will present the offer to the listing agent as soon as possible. At this point I will retain the original earnest money check and only give the listing associate a copy of the check to show to the seller.
Time is of the essence, and so I promise I will be timely in presenting documents. Rest assured, for I will keep you closely informed as our negotiations progress.
Then we wait. While we are waiting, the listing associate will be presenting our offer to the seller along with his or her opinion regarding the relative merits of the offer. There may be multiple offers; there may be counter offers. A fair offer usually generates a fair response. The sellers may be comparing your offer with other offers already in hand. They may choose to wait for additional proposals to be made. In any event, the listing associate will tell the sellers that they can select any of four options:
- accept the offer in toto without changes
- reject the offer
- amend the offer in some way, thereby making a counter offer
- wait and let the offer expire
This is a good time to read about our new contract procedures. If you have not read the pamphlet regarding our new contract forms, you can see it online by clicking on the following link: Oklahoma Uniform Contract Information. Many changes in procedures and terms will be explained therein. Potential misunderstandings and problems will be avoided if you are somewhat familiar with this information.