When a Buyer makes an offer on a home, he/she has a lot of decisions to make. The most obvious is what price to offer, but you may not realize how many other things can be asked for in an offer.
Type of Financing: Most people seek financing from a lender but that can be either conventional, FHA, VA, or sometimes seller financing.
Amount of Earnest Money: There is really no normal amount to put down as earnest money, which is part of your down payment. I have seen as little as $1000, up to $20,000. The seller may push back and demand more earnest money, but maybe not.
Title Company: Although the Seller often chooses the title company to use for the escrow, sometimes the Buyer asks for his own choice.
Types of Inspections & Time Period: Usually an inspection period is 10 business days, but it can be just a couple days or even up to 20 days, depending on what is negotiated between Buyer & Seller. A Buyer can also waive the right to an inspection. And the type of inspections are up to the Buyer too. Normally, a Buyer has a home inspection, and sometimes a radon evaluation, and a sewer scoping. Other inspections might include a foundation inspection or structural inspection.
Tenant Occupied: If a home is occupied by a renter, this is another point of negotiation. If the renter has a lease, then the lease takes precedence. If there is no lease, then the Buyer can ask that the renter be given notice. In Oregon, there is a cost to the Seller to do that. He would have to pay a relocation fee to the tenant.
Close Date: Often, the close date is 30-45 days, the amount of days the lender needs to gather the buyer’s documents, have the appraisal, and have the file underwritten. However, again, the close date might be extended or shortened in order to accommodate the needs of the Seller or the Buyer.
Possession Date: A common scenario is for the Buyer to allow the Seller to remain in the house after closing for a negotiated period of time, usually not more than 30 days. And again, the terms of this extra period of occupancy are also negotiated, for any rent paid to the Buyer, utilities, insurance, and cleaning. And sometimes, with Seller agreement, the Buyer is allowed to occupy before the closing takes place. Again, all is up for negotiation.
Be aware of and prepared to make these choices. Remember, I’m happy to help and advise.