Engel Volkers Buyer & Seller Guide Bozeman - Manual / Resource - Page 37
E n g E l & Vö l k E r s | B U Y E r s g U I D E
Making the o昀昀er
Based on your research, notes, finances and the properties you’ve viewed, you’ve finally found the home that meets your
criteria. You’re ready to make an offer. an offer includes the price you would like to pay for the home in question. How much
you will offer could depend on finances, comparative prices of other homes in the market, as well as private property and
appliances to include in the sale. The offer also includes an earnest money check or good faith deposit, which is an amount of
money that demonstrates your commitment to the property.
a good faith deposit is not the same as a down payment, which is considerably more. the amount of the deposit might be
between 1-3% of the purchase price and should go to a third party which might be a legal firm, escrow service, or title company
- not to the seller. (a receipt is always recommended.) and if the transaction is not completed for whatever reason, the deposit
should be returned. also in the offer are items in the house, including appliances that would be part of the sale, and repairs
you would require the seller to make, prior to the closing. Dates should also be mentioned in the offer including the inspection
dates, the closing date, and the move-in date. Fees associated with the sale and who will be responsible for each, should be
determined. the offer will also declare what the consequences would be as a result of a breach of contract.
Contingencies help offer protection on the way toward finalizing a transaction. While a seller could accept a competing offer
without contingencies and a speedier process, you should consider certain risks. For example, you can ensure that a contract
could be finalized contingent upon receiving written loan approval, and that you can cover the cost of the purchase. You can
also make the transaction contingent on successful inspection results and the completion of any major repairs or deductions
equal to the value of those repairs. if you own a home and need to sell it prior to purchasing a new home, the purchase can be
contingent on the successful sale of your previous home. Deadlines should be assigned to each contingency.
The closing
This is the process that takes place during a meeting of the parties involved in which the transaction is completed and the title
of the property is passed from seller to new owner. Before the closing, the buyer conducts an initial walk-through of the home
to make sure that the property is as it was when you viewed it and that all repairs that may have been stipulated in the offer
have been completed to satisfaction. During the closing, paperwork that has been prepared by all parties involved (including
the advisors, the lender providing the mortgage, attorneys and title company), are signed.
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