You have viewed a few homes and are now ready to make an offer on the home of your dreams. This step can be scary but rest assured; we are here to walk you through every step!
Make An Offer
We will run a CMA (Comparative Market Analysis) on the property you are interested in. This will tell us how the home is priced and the trends in the area. Ex: seller’s paying closing costs, list/sale price ratio, etc. We will then come up with an initial offer together.
When you were pre-approved, the lender let us know if you needed closing cost assistance. Closing costs in our area run about 4% of the listing price. We will keep that in mind when advising you on your initial offer.
You will need to decide what date you want to close, as this is an essential part of the contract. The typical contract-to-close timeline in the Greater Baton Rouge area is 30 – 45 days. Depending on the seller’s timeline, you may be able to stretch that out a little longer.
Deposit (Earnest Money)
Another integral part of the contract is the deposit. A deposit shows the seller that you are a serious and well-qualified buyer. Be prepared to write a check for $500, $1,000, or more, depending on the price of the home you are purchasing.
Depending on the other terms of your offer, you may want to ask the seller to purchase a home warranty for you. The home warranty will cover plumbing, electrical, and mechanical systems (HVAC) issues you may have for the first year.
Are there other contingencies we need to be aware of? Do you need to sell a home in order to purchase this one? Contingencies like these will make a difference in our initial offer.
After the bulk of the offer is completed, there is a space for additional terms. This is where you will ask for the refrigerator, washer, dryer, etc. Some sellers are willing to leave these, while others cannot. We will speak with the listing agent to get these details for you.
Once we have completed the offer, you will sign, date, and time. Use your legal name, which matches your driver’s license. This will help the lender and title attorney finalize the details before closing.
After the offer is signed, we will send it to the listing agent so they can present it to the seller. We have given them a date/time to respond to the offer. This time frame varies depending on the market, but 24 hours is a typical response time. The seller can then respond by accepting the contract as written, sending a counteroffer to change specific terms of the agreement they disagreed with, or reject the offer. Waiting for a response can be a very nerve-wracking time for you. This is when patience is an important virtue to have. Try to plan something to keep your mind off of the waiting game but still be accessible for when we need to contact you.
If you want to familiarize yourself with the purchase agreement before you make an offer, click below to review: