If you're just dipping your toe into the real estate market, you may be wondering things like, "Who delivers your offer to the seller?" In an effort to help you answer that question, we've created a guide to the offer-making process below. Keep reading to learn what goes into an offer, how your offer gets delivered, and what happens next.
Who delivers your offer to the seller?
Once you've put in the hard work and put together an offer, the next step is to deliver it to the seller for consideration. However, the exact process will vary, depending on whether you've decided to hire a real estate agent to help you.
If you have hired a buyer's agent, they will be the one to deliver the offer to the listing agent, who will then present it to the seller. Usually, this is done by sending a simple email with all the documentation attached. That said, in some cases, when you are short on time, the buyer's agent may make a phone call to the listing agent to deliver the offer verbally before forwarding them the paperwork.
If you've decided not to hire a real estate agent, on the other hand, you will be responsible for delivering the offer to the seller's agent. Once they have it in hand, they will go over it with the seller.
What's included in a buyer's offer?
Now that you have a better idea of how the delivery process works, it's important to learn what's included in an offer in the real estate industry. Truthfully, there's a lot more to it than just the proposed purchase price. We've laid all the components out for you below:
- Property address and identifying information: The first thing included in a purchase agreement is identifying information for the property and everyone involved in the transaction, including yourself, the seller, and any real estate agents.
- Purchase price: Next, you'll include the purchase price, or how much you intend to spend on the home. If you're using an escalation clause, you will include that information as well.
- Earnest money deposit: Then, you'll specify the amount of money you're willing to put down as a deposit on the home. This Is known as your earnest money deposit.
- Down payment amount: You'll also say how much money you intend to put forward as a down payment.
- Financing terms: If you need to get a mortgage to purchase the home, you will need to spell that out as well.
- Contingencies: Put simply, contract contingencies are events that need to take place for the transaction to move forward. If you're thinking of doing any inspections, such as a home inspection or structural damage inspection, those will need to be included in your purchase agreement.
- Warranties: There is usually a stipulation that the seller must provide clear title to the property.
- Seller concessions: If you're asking the seller to provide any assistance with closing costs, that will also be included in your offer.
- Important dates: Dates such as an anticipated closing date and the date your offer expires should be clearly presented as part of the contract.
- Supporting documentation: Often, supporting documentation will need to be provided alongside the purchase agreement. This documentation can include a mortgage preapproval, a buyer's financial statement, or a letter to the seller.
What happens after the offer is presented?
After your offer is presented, one of three things will happen: Either your offer will be rejected, the seller will respond with a counteroffer, or the seller's agent will tell your agent that you got the house.
If the seller rejects your offer entirely, it will just be a short phone call to tell you that you didn't supply the winning bid.
However, If the seller comes back with a counteroffer, you may need to continue negotiating further until an agreement can be reached. Typically, the seller will ask for a higher purchase price or for you to remove some of your contingencies.
On the other hand, if your offer gets accepted, congratulations! You are now under contract and on your way to buying a home.
The Millionacres bottom line
At the end of the day, while it's important to know who delivers your offer to the seller, it's equally (if not more) important to understand how to put together an offer. Now that you know more about what goes into the offer-making process, you can safely go about house hunting. Use this information as a guide to help you get started.