Congratulations... You are another step closer to realizing the potential of owning your new home.
Below are the 7 Steps to a Successful Offer. Keep all 7 in mind and the things to have with you when submitting an offer with The Nellis Group in order to give you the best opportunity to reserve the home you have selected:
1. Earnest Money Deposit (EMD): We typically recommend this being a minimum of 1% of the sales price. So if purchasing a $600,000 home it would be $6,000. It is made payable to the Title Company and we recommend putting EMD in the memo line. Do not make it property specific. Since we will need to cash this check within 2 days of the seller agreeing to your offer (ratification) we recommend giving it to your Nellis Group Agent to hold.
2. Type of Loan: Please coordinate with your Nellis Group Agent and the local lender on the best way to present your offer and the timelines for financing, appraisal, etc. In addition, your down payment may change based on the type of offer and loan amount you are using for the home. Your Nellis Group Agent will walk you through this to help with the opportunity to reserve the home.
3. Full Approval: Please make sure you have coordinated with your lender of choice and The Nellis Group so that we can ensure your offer is the strongest. If using an affiliate of The Nellis Group the lenders take an ACTIVE role in helping you get accepted with the seller. Ideally from your lender we will get the following: strong lender letter per the contract offer price, call to the seller/listing agent direct from the lender, email confirmation from the lender to seller/agent.
4. Cash Offer: You will need to provide either a letter from your private banker- it will function very similar to the approval letter in step 3 OR a copy of your accounts showing the required funds. It is called "PROOF OF FUNDS" document (simply cross out the account numbers)
5. Personal Cover Letter: We know based on experience that a great cover letter that is personalized to you and the commonalities you have with the seller can make a BIG difference in getting the home. We have seen sellers take less money as a result of a personalized letter or take your offer over another when competing. Click here for a sample: SAMPLE LETTER
6. Inspections: We recommend for buyers to pay the money to conduct their own inspections on the home to ensure the home is not a "money pit". Typical inspections & their costs (more details can be found at INSPECTIONS :
Home Inspection: $400-$600.00
Lead Based Paint: $250-$500.00
Termite: $35.00 (DO NOT ORDER prior to the home inspection. This is ordered typically within 30 days of settlement)
7. Settlement Date Flexibility: Many times a seller will take an offer that coincides with their individual timeline. Some sellers need the funds in order to purchase the next home so they want a "RentBack" in order to get their proceeds first and not have to leave the home the same day. Our Nellis Group Agent will help you determine the proper timeline and offer scenario. As a buyer, your flexibility on settling FAST on a vacant home can save you money in sales price as well as the ability to let a seller stay in the home.
** Keep in mind, our position is to work for you as OUR buyer. We coordinate all efforts for the best result for you as the buyer. This can result in you choosing between 2 types of AGGRESSIVE
AGGRESSIVE for PRICE: You like the home and want to buy it but ONLY if you can get it for a "steal" in the market. You are fine if someone else comes in and pays more for the home. It is a logical option for you but not the ideal home for you.
AGGRESSIVE for RESERVING: This is it. It has at least 8 out of the 10 things you were hoping for in a home. You want to make sure that you reserve it first and take it off the market so no one else gets it. Typically the offer price is closer to the current list price/terms (some of this will depend on multiple factors- consult with your Nellis Group Agent).
Here are a few key Real Estate Terms that you should be aware of.