When you find the right home, your GMAC Real Estate Northwest Real Estate Agent will take you through a step-by-step process to make the purchase. You know the seller’s asking price, now it’s time to make some important decisions.

Preparing to Write an Offer

You may be in a strong bargaining position to make an offer below the listed asking price under certain conditions, for example, you are paying in cash and don't have to take time for an appraisal, or you have been pre-approved for a loan. Conversely, in a “hot” seller’s market, you may have to offer above the asking price to beat other offers coming in.

Your bargaining position is affected by the reason the house is being sold. For example, the seller is moving for job-related reasons or is divorcing and is in a hurry to sell, or is in no hurry and can wait for the right offer.  Your GMAC Real Estate Northwest Sales Associate, as your Trusted Advisor^SM will help you understand your negotiating position, and will offer insights to help you:

• Decide how much you should offer. Consider factors such as the home’s length of time on the market, how realistic is the listing price, availability of financing, and other costs.
• Know what happens to your earnest money. The earnest money deposit shows that you’re serious about buying the home. This deposit is held by a third party such as your Brokerage, the Listing Brokerage, or the Title Company or Escrow Agent until the sale is closed or contract otherwise terminated. If you buy the house, it is applied to the down payment or closing costs. If you fail to buy the house after the seller has accepted your offer, he or she may have the right to keep this deposit.
• Decide which title and escrow company to use. The title should show no substantial claims or liens against the property. Once you have an accepted offer, your GMAC Real Estate Northwest Real Estate Agent will make sure escrow is opened right away and get a preliminary title report to you for review.
• Decide what conditions or contingencies you want in place. Your purchase may be made contingent on obtaining financing, a home inspection, a radon test result, or selling your present home. Real estate contracts today already include many of these standard real estate contingencies.
• Spell out what you’re buying in the contract. Common items to be specified include anything that can be picked up an moved off the premises without much effort. When in doubt, write it out. It is easier to identify  
• Determine what special provisions should be included, such as for property taxes, insurance costs and utility bills. Read all the small print carefully. Your GMAC Real Estate Northwest Real Estate Agent will explain the Purchase And Sale Agreement as you go over it. 
• Determine the closing date and possession date you want. Your Agent can tell you who typically acts as a settlement agent in your area. Allow yourself plenty of time for financing and all the paperwork in the transaction. Real Estate contracts have deadlines, and if you don't close by the date you agree to, you could lose your earnest money and the seller could sell to someone else.

Presenting Your Offer

Your GMAC Real Estate Northwest Real Estate Agent will present the offer to the listing agent.  As the buyer, you have the right to have your agent present the offer directly to the seller in the Listing Agent's presence.  Your agent will present the offer, explain your position, and then leave the seller and their agent to discuss the offer.  Some sellers do not like to receive offers in this manner, so your Real Estate Agent will advise you if this is a good idea based on the terms you are offering.

The law requires realtors® to present all written offers, no matter how unrealistic they may seem. It is important to remember if you are serious about a property, that if you insult the seller, they may not be willing to work with you if you decide to write a more realistic offer at a later date.