Making an Offer on a Home | New Homes Market Center
Step 4. Make an Offer on a Home & Accept a Contract
When you are ready to make an offer on the home of your choice, first read the entire contract form. If you are unclear about anything, ask your New Homes Market Center real estate agent (Realtor®) for assistance. Now you are ready to make an offer to the seller or builder. Professional standards obligate your agent to present all offers to the seller but when you are buying a new home direct from the builder both you and your New Homes Market Center real estate agent should be present.
The offer is like a “map of the sale” and covers the following:
- How much you are willing to pay
- The financing you will use to purchase the property including down payment, interest rate, term, etc.
- The title company you have chosen
- If and how any special characteristics of the sale will occur
- Whether there will be an inspection from a licensed inspector
- How any repairs will be handled
- When the sale of the property will occur
- What fees or closing costs you will pay and what fees the seller/builder will pay
- Any other details regarding how the sale will proceed
- If there will be an option period
Accept a Contract
When both you and the seller or builder have agreed on all terms of the offer and signed the contract, it becomes legally binding. The real estate agent then dates the contract and all events based upon certain dates in the contract will subsequently begin.
After all parties sign the contract, the real estate agent will deliver the contract and earnest money – money given to the seller as part of the purchase price to “bind” the transaction or assure payment later – to the title company.
The lender with whom you have pre-qualified will then complete your formal application, order the appraisal, survey, credit report, and collect other documents necessary for a complete loan file. Next, you will need to order a home inspection.