What’s required in an offer package?
When we submit an offer, we typically include the following items:
- An earnest money deposit “EMD” check – typically 1-3% of the offer price. It can be in the form of a a personal check. Funds are held in escrow and applied toward your purchase. The EMD is refundable if you don’t like the results of home inspection, if home doesn’t appraise, or if you cannot get a mortgage.
- Signed purchase agreement
- Signed agency agreement
- Signed seller’s disclosure and lead based paint disclosure
- Lender pre-approval letter, OR if buying with cash, proof of funds is required (typically a bank statement with account numbers blacked out)
- Defined closing date
- Note: We will almost always make the home purchase contingent upon your satisfaction with the home inspection and the lender’s satisfaction with the appraisal.
Are we in a competitive situation? Consider deal sweeteners.
- Larger EMD amount
- All cash or Conventional loan rather than FHA loan
- Larger down payment
- Shorten time until closing
- Reduced cost for seller occupancy
- No seller concessions
- Shorten inspection period
- Buyer pays for home warranty
- Fewer contingencies
Not in a competitive situation? We might have more flexibility.
- EMD – amount not as much of a concern
- FHA – less of an issue
- Down payment amount more flexible
- Closing date not as urgent
- Seller occupancy = 1/30th of your new mortgage payment, per day
- Seller concessions might be considered
- Inspection period up to 10 days
- Ask for a home warranty of choice