What Happens When I Sign An Offer?

Clients often wonder what happens once they decide to make an offer on a home. Before you sign an offer we will review and discuss the purchase contract. You will decide the price you want to offer and any terms that you want included in your offer. The important next step is to get your offer accepted by the sellers. The following steps outline the process that occurs after you sign the purchase contract.

1.         After you sign the contract I will phone the listing agent and set up an appointment to present the contract personally to the seller and their agent as soon as possible. Meeting personally with the seller allows me to make a complete, professional presentation and respond immediately to any questions the seller might have on the contract. On occasion the seller is not available for a personal presentation; but the preferred method is to meet personally with the seller.

2.         Before the appointment I will prepare a professional presentation that will include: a brief summary of you as the buyer; your deposit and financial information; the actual contract with your terms and any additional information that will help promote you and your offer. I will also prepare a “Highlight Sheet” that summarizes briefly on one page the major benefits and terms of your offer. The “Highlight Sheet” allows us to discuss the important aspects of your offer with the seller, while minimizing the confusion of the detailed 7 page contract.

3.         At the meeting with the seller I will discuss your strengths as a buyer, the contract, and answer any questions the seller may have regarding the contract and then ask for the seller’s signature. The stronger the offer is at this point the more likely it is that the contract will be immediately accepted.

4.         The seller can have three possible responses to your offer:

• By signing the contract as written the sellers accept all the terms of the contract and the contract is binding when it is delivered back to me.
• The sellers can find your offer to be so unacceptable that they choose to not respond.
• If the price or any of the terms are unacceptable to the sellers they can provide a counter-offer to be presented to you. When a counter-offer is made to you there is still no binding contract or obligation between you and the sellers. The sellers may continue to look at other offers and accept one prior to your acceptance of their counter-offer and its delivery back to them.

5.         If you receive a counter offer from the sellers you have the same 3 choices the sellers had. Accept, Reject, or Counter their counter-offer.

6.         When your offer and all counter offers are accepted and signed by you and the sellers, and they have been delivered to both you and the sellers, you have a binding contract to purchase the home.

7.         At this point I will open an escrow with the title company for you. The title company will deposit your deposit check and the escrow process will begin.

8.         During the escrow period any contingencies included in the contract must be resolved in timely manner. Formal loan approval and commitment must be obtained. Transfer disclosure statements must be prepared, reviewed, and approved. Pest, home and other inspections must be obtained, reviewed, and approved. Preliminary title reports must be reviewed and approved. Any question you may have will be answered by myself, the lender, title officer, or other professional.

9.         Occasionally during escrow, some contract terms will need to be modified. All contract changes require a written addendum to the contract be prepared addressing the changes. Any addendum must be agreed to and signed by both you and the sellers to be enforceable.

            During the entire process of gaining contract acceptance and monitoring the escrow, agents for both the buyer and seller spend many hours behind the scenes working with the title company, inspectors, lenders, etc. organizing and preparing the many papers and procedures needed to successfully close your escrow and consummate the sale. Agents commonly resolve many potential problems before the clients even become aware of them. While you may personally see me for what seems like a relatively few hours during this period, I will be very busy monitoring your purchase and making sure that you are completely informed on the progress of your escrow.