Steps To Make An Offer On A New Jersey Property
You’ve finally discovered the house you want after weeks or even months of searching, and you’re ready to put an offer on it. While this is an exciting moment, it may also be stressful as the home-buying process begins to take shape. If you want your offer to be accepted, you must be prepared. Here are steps to making an offer on a home to consider as you prepare.
GET A MORTGAGE PRE-APPROVAL
If you’re serious about purchasing a house, you should get pre-approved for a mortgage before making an offer. This is especially true in a tight market with limited inventory, when the seller may receive multiple offers. Getting pre-approved shows the seller that you aren’t merely looking at houses for the sake of looking at them. A mortgage pre-approval demonstrates that you are serious about buying a home.
DECIDE ON YOUR PRICE
It is not always required to make an offer on a home at its full asking price. Several factors will influence your decision as well as the seller’s decision to accept an offer. Find out what the comparable sales in the neighborhood are, and consult with your real estate agent. If you plan to pay cash, limit your contingencies, or the home has been on the market for a long time, you may be able to negotiate the price of the home. However, in a market with exceptionally low inventory, such as the one we are experiencing at the moment, homes rarely sell for more than the initial asking price. Buyers are realizing that making a full-price offer as soon as feasible is the best tactic.
REVIEW THE OFFER PAPERWORK AND SIGN IT
Your real estate agent will assist you in preparing a written offer once you have received pre-approval and decided your price. If the offer is accepted, this purchase agreement will become a sales contract. It should include the following:
- The address of the property as well as the block and lot numbers are included.
- The price at which you expect to sell the house
- The deal’s terms, such as whether you’re paying cash or getting a loan.
- The amount of the initial deposit. (deposit of earnest money)
- The escrow’s specifics. (WHERE WILL YOUR DEPOSIT BE KEPT)
- The deadline for submission.
- Any unforeseen circumstances, such as finance, a home sale, or a home inspection.
- The day on which the buyer will be able to take possession of the property.
- Other criteria, such as seller disclosures and legal approval, are set by the state.
- The date on which the offer will expire.
SEND IN YOUR DOWN PAYMENT (EARNEST MONEY DEPOSIT)
When you make an offer on a property, you will also submit earnest money in addition to the purchase agreement. This is a cash deposit that serves as a sign of trustworthiness. If your offer is accepted, the earnest money is put into escrow and applied to your down payment. If you decide to back out of the arrangement at a later date, this money may be forfeited in some states. In New Jersey, this isn’t always the case.
WHAT NEXT?
Your real estate agent will send the offer to the seller or the seller’s agent once the document is completed. The seller will usually respond in one of three ways: accept the offer, reject the offer, or counter offer. If the seller accepts a counter offer, he or she will advise revisions to the offer, such as a revised sales price, a new date of possession, or the removal of contingencies. You have three options after receiving a counter offer: accept it, reject it, or make your own counter offer. This process continues until the buyer and seller reach an agreement on the terms of the sale or the offer is turned down. When both parties sign the offer, it becomes a legal contract, and a three-day attorney review period begins.
REVIEW BY AN ATTORNEY
The standard attorney review period in New Jersey is three business days after the seller signs the contract with the buyer. During this review time, the buyer and seller can request contract revisions through their New Jersey Real Estate attorneys.
HOW CAN I HELP!
As a licensed real estate agent in New Jersey specializing in the Ocean County area, I am well trained in drafting proper offers that will give you the best opportunity of getting your ideal house. Please contact me right away with any questions you may have and to begin your house search!
Summary: Steps To Make An Offer On A Home
You’ve finally discovered the house you want after weeks or even months of searching, and you’re ready to put an offer on it. While this is an exciting moment, it may also be stressful as the home-buying process begins to take shape. If you want your offer to be accepted, you must be prepared.
If you have any questions about Steps To Make An Offer On A Home contact me today.