PREPARE TO MAKE AN OFFER IN SC
BEFORE MAKING AN OFFER, THERE ARE A FEW THINGS TO MENTALLY PREPARE FOR
The market, the property, the day of the week, and other factors will all affect these suggestions. The purpose of this is to provide you a general idea of the issues that are negotiable or can be filled in when making an offer.
Think about the absolute MAX you are willing to pay for THAT specific property. This has nothing to do with what the Seller paid, what the Seller owes, or what the Seller is asking; it has everything to do with what the market says it is worth TODAY. What dollar amount will you be happy and content with, keeping in mind that another Buyer may be making an offer at the same time?
A. NC DUE DILIGENCE:
This fee is 100% non-refundable should you terminate the contract for any or no reason. This fee is applied towards your total purchase price should we get to closing, which we anticipate. Also, the Due Diligence is ONLY collected IF we execute a contract, which means your offer has been accepted. Based on market conditions, your offer may need to be more or less competitive. For example, in a hot market your offer may need to be higher, but can be lower if a property has been on the market for a while or in less competitive situations.
B. EARNEST MONEY DEPOSIT:
This is a deposit held in Escrow by the closing attorney and/ or title agent. This deposit is refundable should you terminate the contract during the Inspection Period (21 days for example). Should you terminate after the Inspection period, the deposit is released to the seller. Should you move forward with the contract to close, this deposit is credited towards your total down payment/closing costs.
This is the period you purchase (by paying the Due Diligence Fee) from the Seller to inspect the Property. During this period your Earnest Money is protected in Escrow. Various inspections include but are not limited to radon, mechanical, structural, surveys, etc. We are talking $1,000+ for inspections and those are paid whether you close on the property or not. Not to scare you, we just want to be sure it’s a top contending property.
This date is typically 30-45 days from the initial date of contract, depending on the market conditions.
All appliances that are permanently attached to the property such as a dishwasher will stay as a fixture. Houses do not automatically include refrigerator, washer or dryer and are considered personal property. Depending on market conditions, as well as the conditions of these specific appliances (refrigerator, washer, dryer), we may or may not ask for one, or all of them to be included in the sale.
Closing costs and pre-paids (escrow, taxes, insurance) are additional expenses to consider. Please ask your lender what you can expect to pay here, as it varies by Buyer and purchase price. You can ask the Seller to pay a portion, or all of your closing costs, depending on market conditions, such as multiple offers. My recommendation will vary.
Do you want the Seller to provide a 1-year (13-mo.) home warranty? Essentially it’s an insurance plan for your fixtures and appliances. You have the option of purchasing one on your own as well.
There may be other terms of the offer such as an expiration date, pre-negotiated repairs, potential appraisal contingencies, etc. This would all be dependent on the market and property conditions.