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What You Should Know

You Made An Offer, Now What?

With the help of your realtor you have found the perfect home and decided to make an offer. What happens next?

With these suggestions and the advice of your realtor you’ll soon be the proud owner of a new home.

After you have signed your offer you will be ask to provide a check for the “earnest money”. This shows the seller that you are a serious buyer. Your realtor will advise you on the appropriate amount of earnest money depending on the amount of the offer and what is cusomary for the local market. For example, if you make an offer of $100,000 on a house in Nashville your earnest money would probably be $500, and for a $200,000 house it would probably be for $1,000. This money will be placed in an “escrow account” and will be applied to the purchase price of your home at the closing.

If for any reason the purchase is not consummated, you may be entitled to receive part or all of your earnest money back. In certain instances, the seller may be able to retain part or all of your earnest money as liquidated damages. Prior to executing a purchase contract you should discuss with your realtor your ability to get your earnest money back should a problem arise.

The period that you are “in escrow” is often 30 days, however this period may be shorter or longer depending on the stipulations of the purchase contract and the loan you have decided on. During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and contingencies. Each contract is different, but most include the following:

1. Financing contingency. Once the contract is signed by both parties you have a period of time to secure financing. If you are unable to secure financing during the allotted time period and the seller will not provide a written extension of time you must decide whether you want to remove the contingency and take a chance on getting a loan. You may choose to cancel the purchase contract and get your earnest money back. (All companies do not offer this feature in their contact, however at The Buyer‘s Agent of Nashville & Middle Tennessee you will be protected if this situation occurs.)
2. Inspection contingency. This should be completed as soon as possible after the contract to purchase has been signed by all parties. In most cases the seller will make the required repairs, in accordance with The Buyer’s Agent of Nashville & Middle Tennessee company contract.
3. Title Search. Seller is required to provide marketable title.

Secure homeowner’s insurance. In most cases homeowners insurance is required before you can close the purchase.

Contact your local utilities and schedule them to be turned on the day of closing.

Schedule a final walk-through inspection of the home or property. At this time you should make sure that the property is exactly as the contract says it should be. What you thought to be a “permanently attached” chandelier that would come with the property might have been removed by the seller and replaced with an entirely different fixture.

You’ve made it! Once the transaction has closed you’re the proud owner of a new home. Congratulations!

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