Once You Find Your Home, Let Your Realtor Help You Determine The Right Price & Make An Offer
Contrary to what most buyers tend to believe, lowballing a seller will not help them purchase a home for a cheaper price. Many sellers get offended and become very difficult to negotiate with after receiving an extremely low offer. *We have seen many sellers reject low offers OR spitefully counter back just a few dollars less than listing price.
Review The Property Condition Disclosures
The PCD will entail any issues the property has had or changes the owner has made to the property since their ownership. In some states, sellers do not have to disclosure anything to a buyer but in the great state of MS it is required a seller provide a PCD to all potential buyers. If a property owner has not occupied the property or if the property is bank owned, sometimes a PCD is not provided or if it is, it is not well filled out. A property owner can only disclose what they know to be true. A bank and or a owner who only rented a property they are selling may not know everything that was fixed or changed during their ownership.
The Realtor you choose to work with will greatly affect the terms negotiated in your favor! Purchase price and many other items can and will be negotiated in your offer. Most buyers do not realize that some sellers are willing to pay for: the buyers closing cost, a Home Warranty, the termite inspection, a survey, “x” amount of home repairs, having the property professionally cleaned, and much more. Also, a knowledgeable Realtor will know how to protect your best interest should something go awry during the transaction.
Until you are officially “under contract”, other buyers can present offers to the seller. You are under contract once all parties have agreed on terms and signed the offer. If multiple offers are presented to the seller, the seller may call for “highest and best” offers and all buyers will have the option to present their highest and best offer without knowing what the other offer amount is. (Once the buyer and seller are under contract, the seller can no longer entertain other offers)
Deposit Earnest Money
This is also known as “good faith money”. It is basically a deposit the buyer puts down within 3 days after both the seller and buyer have signed the offer and the property is officially “under contract”. The earnest money is refunded to the buyer at closing. Typically, the only way a buyer may loose their earnest money, is if they break the contract for an illegitimate reason.
If you back out of the MS State Contract due to one of the following reasons, in the time frame negotiated, you can easily re-obtain your earnest money.
- Home Inspection- If a buyer agrees to purchase a home inspection, the buyer must be satisfied with the home inspection. If they are not satisfied with the home inspection, even with the smallest detail, they can back out and re-obtain the earnest money.
- Obtaining Financing- The buyer must be able to obtain financing. If for some reason, the buyer is unable to obtain financing, they can back out of the contract and retain their earnest money.
- Insurance- The Realtor, Team Geotes, can make an offer contingent upon the buyer finding proper insurance quotes.
- Appraisal- If the property does not appraise for value, you can back out and re-obtain your earnest money. (If you are a cash buyer, you do not need an appraisal and the contract wont be contingent upon this unless you state you will be purchasing an appraisal)
- Other Inspections- Some properties / loans require extra inspections such as a well, pool, or septic inspection. A contract can also be contingent upon a survey.
- Random- If the house burns down, blows away, or aliens abduct it, you can back out and obtain your earnest money.