Make Offer

When you've found the house and are ready to make a written offer to buy, your Security Realty agent will help write a contract that states your offering price, contingencies, concessions, and any other details you want covered.

Q: How much should I offer? First, treat the asking price as only a rough estimate of what the seller would like to receive, and recognize that different sellers price houses differently. Some sellers deliberately overprice, others ask for pretty close to what they hope to get, and a few underprice their houses in the hope of attracting a flood of potential buyers who will compete and overbid. The seller has no obligation to sell to you or anyone at the advertised price. Second, consider what you are pre-approved for, or what you are able to afford on a monthly basis. Use our mortgage calculator to estimate monthly payment scenarios. A house in your price range, but in need of remodelling, may put you in a financial bind. Third, discuss current trends in your area, and review comparable house sales with your realtor. With your agent's help and guidance, you will come to an offering price that feels reasonable and comfortable.

Q: What should I include in an offer? Along with your offered purchase price, include any contingencies, items you would like included in the purchase price, and a deadline for their acceptance or rejection of the offer. Your Security Realty agent will help you step-by-step through writing this contract.

Q: What is a contingency? Contingencies are events that must happen within a certain amount of time (such as 30 days) or else the deal is off. For example, you may want to make your offer contingent on you securing a mortgage, the house passing certain physical inspections, or your ability to sell your existing house first. Be aware, however, that the more contingencies you place in an offer, the less likely the seller is to accept it. In the hottest markets, sometimes the successful bidder will have taken a calculated risk and made an offer with no contingencies.

Q: What is a counteroffer? After your initial offer, the seller may counter. Most counteroffers propose changes in these areas: 1) price - the seller wants more money than offered; 2) closing date or occupancy date - the seller needs more time to move out; 3) contingency on buyer's sale of current house - the seller doesn't want to wait for you to sell your house; 4)inspection contingency -- the seller wants the buyer to schedule the inspections more quickly, or not at all.

Q: What if I don’t agree with the seller’s counteroffer? When the seller counters, you can accept the seller’s counteroffer, reject it, or present a counter counteroffer. This back and forth will go on until you come to an agreement and accept all of the terms of the other’s offer, or fail to counteroffer in writing within the time allowed.