A Series for the First Time Homebuyer, Nashville Style! STEP FOUR: MAKING AN OFFER!
So you have decided that you want to take advantage of the First Time Home Buyer’s $8000 Tax Credit?!! This may be a great idea for you because in Middle Tennessee, you have got LOTS of homes to choose from! Your dream of homeownership may soon become reality!
If you have never bought a home before (believe it or not, a “first time home buyer” just means that you have not owned a home in the past three years), the idea of it might be a little bit daunting. This series that I am putting together strives to help clarify the steps that will lead you into your new front door!
So you have decided on a house – GREAT!!! It’s time to Put in an Offer! Instead of trying to re-invent the wheel and explain every little detail about the contract itself, I will just provde this link so you can better understand the Tennessee Association of Realtor Purchase and Sale Agreement.
Basically what is going to happen is this: You, the Buyer, will tell the Seller, on paper, what you are willing to pay for their property and any special stipulations you would like to ask for. Then the Seller will most likely counter you with what they want. This process continues until (hopefully) you can both agree on the terms of the purchase. When that happens, you then have what is called a “Binding Agreement”.
Here is an example:
Suzy Q. wants to purchase John Doe’s listed property. She offers him $199,000 (it is listed for $215,000) and asks him to leave the refrigerator, help her with $2000 in closing costs, and give her a Home Warranty.
John Doe receives Suzy Q’s offer, considers it, and then decides to make a Counter Offer. He agrees to leave the refrigerator, agrees to give her the Home Warranty, but says no to the closing costs and wants the price of the house to be $210,000.
Suzy Q responds to John Doe’s counter offer with her own counter offer. She will pay $210,000 for the house, but wants the $2000 closing costs to be put back in, will accept the refrigerator and the Home Warranty.
John Doe decides he will concede $1000 in closing costs to Suzy Q, give her the refrigerator and the Home Warranty and leave the price of the house at $210,000. This is acceptable to Suzy Q, the Buyer and the Seller both sign the paperwork and now they have a Binding Agreement!
Please keep in mind that this negotiating back and forth is done by the realtors and should not be attempted by you! That is what the realtors get paid for – also, it’s a no-no to contact the Seller’s realtor, so everything you want to communicate to the opposite side should be done through YOUR REALTOR!!!
There are more steps to take before you sign on the dotted line! So tune in for STEP FIVE: THE INSPECTION CONTINGENCY AND THE HOME INSPECTION PROCESS.
If you are interested in selling or finding a home in Green Hills, Downtown, 12th South, or Oak Hill area of Nashville, or would like to look at other real estate for sale in the Middle Tennessee area, please search the MLS HERE. Please note: You will have to register with my site to be able to search the MLS. I will contact you initially and all requests thereafter for privacy will be respected.
Looking to move? Wanting to Invest? Need help as a First Time Buyer? Please feel free to call me, Emily Lowe (yes, I’m a Realtor, with The Lipman Group Sotheby’s International Realty) at 615.509.1753