So…you have found the home you want to make an offer on. Now what? Well, we will talk about all of the considerations noted here…and then actually put the offer on the most recent Arizona Purchase Contract. It is VERY important that you review this document prior to making the offer and discuss with me any concerns or questions you may have. In addition to the contract the seller will be giving special consideration to how completely your lender has completed the PRE-QUALIFICATION FORM. Ideally, we want all of the information to be completed prior to making an offer.
I like a program called DOCUSIGN. It is a way to have people LEGALLY sign documents in an electronic form. It is safe, secure, easy…and best of all GREEN. I very rarely print any paper anymore. This does not mean YOU can not print a copy of the offer for your files…but I try to use as many paper-free programs as I can. If you are NOT comfortable with this…of course I can print and get “live” or “wet” signatures from you in person.
But typically…how it goes is this. We talk about the considerations of making the offer…decide what we are going to offer…and I prepare the necessary documents. This may include several other forms in addition to the Purchase Contract. For example…if we are offering on a short sale we will need the SHORT SALE ADDENDUM….and the AS-IS ADDENDUM as well. Each transaction could involve specific necessary forms.
Once I prepare the forms and we have reviewed them…either in person or over the phone…I send them to you via e-mail. You will be sent to a secure site where you will simply CLICK where indicated to initial and sign the forms. When you have completed the process…I will be notified that they are ready.
At this point I have already spoken to the listing agent and given the “heads-up” that they should be expecting our offer. If possible, I like to go with the listing agent to present the offer to the seller. Truthfully, this used to me the norm…but in today’s electronic world…it is common for the listing agent to handle this process via telephone and computer…so I do not often get the opportunity. But if I can I WILL!
At this point three things (well 4 things) can happen.
- The seller accepts our offer
- The seller sends us back a counter offer (it is not uncommon to counter back and forth a couple times)
- The seller REJECTS our offer. This is not very common unless we have insulted them with a super low offer.
- If this is a bank owned property and they have multiple offers…they may come back to us and ask for our “highest and best” alerting us we have one more chance to change our offer to try to get the home. We will have no idea how many other offers there are or what they are offering.
So… when we get our offer accepted we open escrow. This means you deposit your earnest money to the title company. They are an independent third party who does not work for either the buyer or seller. Rather just handles the closing and provides the new buyer with title insurance.