One of the best parts of the buying process is when you find a home you love and are ready to put in an offer. This step is full of excitement, but it’s important to stay grounded and ask these 5 key questions to ask your real estate agent before submitting your offer:
1. How should we structure the offer? Different offer structures can influence the seller's decision, so your strategy should be carefully considered. Ask your agent about your options such as a standard offer with inspection and financing contingencies or an offer with more contingencies and negotiations attached.
2. What contingencies should we include in the offer? Contingencies protect you as a buyer by allowing you to back out if certain conditions aren't met. These are critical to make sure you don’t end up in a bad deal! Your agent will explain standard contingencies, but you might also consider others based on your needs and the property itself such as repair contingencies and timeline contingencies.
3. How soon do we need to provide the earnest money deposit? Your earnest money deposit, which is the amount you put down with your offer, shows the seller you’re serious. If you back out of the deal without invoking a contingency, you’ll forfeit the deposit. Make sure you understand the timeframe for your deposit so the offer process moves smoothly.
4. What’s the lowest price you think we could offer for this house and still close the transaction? Discuss with your agent the lowest price they believe will still be competitive and get you closer to closing the deal. This question can help you find the perfect balance between getting the best deal possible and still persuading the seller to choose your offer.
5. If the offer is accepted, what are the next steps? Before you even make the offer, you ned to be prepared for what happens if your offer is accepted. This next part can move quickly! Your agent will walk you through the next steps, which can include counteroffers, negotiations, inspections and appraisals.
When you ask these questions, you’ll feel much more confident in your offer because you’ll have a deep understanding of all the moving parts. Plus, if the seller comes back with a counteroffer, you’ll be able to make a quick decision since you truly understand your offer.
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