It can be a competitive market in Metro DC. If you find yourself competing against another buyer for the home you want please review the following options with your Nellis Group certified Realtor:
1. EMD (Earnest Money Deposit): 5-10% (cashed within 2 business days)
2. DOWN PAYMENT: 20-50%
3. CLOSING COSTS: Probably not- if needed ADD ON TOP (increase the sales price)
4. HOME INSPECTION CONTINGENCY OPTIONS (4 Types):
Home Inspection Pre-Offer: Conduct the inspection without knowing if you will be able to reserve the home. (HI is not a contingency to the offer)
Home Inspection Standard: Right to void offer and negotiate repairs
Home Inspection Void Only: Right to void offer
Home Inspection Removed: We do not recommend this as an option unless you did a Pre-Offer Inspection. (This would mean you do not have a walk away)
5. APPRAISAL CONTINGENCY:
Standard Appraisal: home has to appraise
Appraisal Cap: you offer X amount over a low appraisal (typical is $10-20k over) to NOT exceed the ratified sales price.
Guaranteed Price & Appraisal: you guarantee a price up to X and over that it has to appraise. For instance: 1.15M and over it would have to appraise.
No Appraisal: people will do this, we typically do not recommend waiving the appraisal.
Buyer Appraisal Package - how many offers, etc. upgrades, etc.
6. FINANCING CONTINGENCY:
Minimize the Days: Typical is 21 days. We recommend less than 14 days.
Waive/Remove: If you are FULLY approved with a local lender and you have confidence in not losing your job prior to settlement, you have the freedom to waive this contingency.
7. LAP: If you need closing costs review if it can be covered by our approved bank for this unique program- ideal for FHA or VA loans.
8. SETTLEMENT DATE: Stipulate seller can select within 7 days of ratification. Give them a range of 30-60 days to choose.
*If property is vacant consider a 14 day close. Many sellers will take an offer with a faster settlement date.
9. RENTBACK: no charge on the RENT (mortgage is paid in arrears). Seller remains for FREE
10. GRANTOR'S TAX: pay it for them ($2.00 per thousand) in Virginia. In DC pay a portion of the seller recordation fee.
11. CONGESTION RELIEF: pay it for them ($1.50 per thousand) in Virginia.
12. HOME WARRANTY: seller or buyer pay
13. ESCALATION ADDENDUM: Review numbers and market data provided by your NG Realtor
Under 500k (Increment: 2,100)
500k plus (Increment: 3,800)
ODD always… not a typical amount: instead of 710 cap at 711k
14. PERSONAL LETTER: we recommend writing a personal letter. Sample Purchaser Cover Letter
** With Fair Housing Rules we recommend NOT including a picture of you/your family. You can include pets (dogs/cats etc) if you want along with the offer.
If you are contingent have the FULL CONTRACT and NO CONTINGENCIES remaining for an ideal offer…
* If you are competing with multiple offers it is unlikely that the Seller will accept an offer contingent on selling another home.