Today we are going to delve into an making offer on the Barrington IL dream home you’ve found. If you have not read the prior posts in our guide, please go there at your convenience.
It’s important to let you know that I write only with Barrington Illinois in mind. Not any other state and not other areas in Illinois. In the Chicago metro area with use contracts approved by local attorneys. They are not the same as Southern Illinois and not the same as other states.
Deciding It’s Time To Make An Offer
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I am a firm believer that when you find your dream Barrington IL home you’ll get a gut feeling. It’ll will be the one house that you cannot stop thinking about. You’ll imagine how to lay out furniture. You’ll dream of how to spend the summer outdoors. You’ll even make sure it’s location fits your commuting limits and shopping needs. All other homes will fade into the past and this home will stand out. Whether you feel nervous anticipation or relaxed contentment about finding your dream Barrington IL home is more about your character than anything, but what is apparent is that you’ll be ready to make an offer.
The Process of Making Your Offer
Once you’ve decided you want to make an offer on a Barrington home, the first step is to let us know. Generally speaking we want to make offers to purchase any real estate in writing. It sends a clear signal to a seller that you are serious. Some things we need to consider as we put together your written offer are:
- Names on Offer
- Closing Date
- Earnest Money
- Real Estate Taxes
- Home Owners Association Fees
- Credits From Seller
- Existing Home Sales
- Condition of Property
- Well and Septic
We will also be obtaining and reviewing the property disclosures made by the seller. Those include Residential Disclosure, Radon Disclosure and if necessary Lead Based Paint Disclosure and sometimes Mold Disclosure.
Before now we will have talked about the financials needed to secure a purchase. You can read more about that in what to tell your real estate agent.
The offer to purchase contract used here in Barrington is 13 pages long. It’s your buyers agent’s duty to explain the contract before you sign it. Even though you have the protection of an attorney, wouldn’t you like to know what’s in a binding contract? I know I would. We have no problem explaining the entire contract to you!
We’ll also being helping you with a strategy to get your home for the best possible price. Low ball offers are out these days. (2015).The real estate market has recovered and part of our education is to let you know what constitutes a good offer in today’s market. Markets do change all the time and when you’re ready to buy we’ll let you know how things stand for you as buyers.
We’ll advise on how to best present your offer taking into account all the variables related to the list above. Everyone’s circumstances and desires are different. The scenarios are limitless, so no point my explaining one here, it’ll only serve to confuse you! Just know we are looking out for you from start to finish – it’s not just our morals it’s also the law.
Presenting Your Offer
Once we have put the final touches on your offer, reviewed and signed the seller disclosures and made sure your financial letter is suitable to buy the property, it’s my job to get it over to the listing agent as soon as I can.
Signed offers can be scanned and emailed to the listing agent or if digitally signed the digital contract is emailed over. A call is made to let them know it’s coming and I’ll seek an acknowledgement of some kind.
Today’s tech savvy Realtors use smartphones and can read offers on their phones.
Waiting For a Response
Part of our contract requests a timely response. It’s acceptable to allow sellers a little time to consider the offer you have made. Maybe they are working and need to think about it after work. Home owner partners need time to discuss together. So expecting an immediate response will lead to frustration and disappointment. Sometimes responses come back right away, some take longer. It’s just the process.
The seller can do 3 things with your offer. Accept it, reject it or counter some or all of your terms and conditions. Our next strategic move depends on the response we receive. We’re still here guiding you through.
Once an offer is agreed upon, any changes must be made and the seller can then proceed to sign it. Once the signed offer is in your hands, it’s a deal, you are both under contract to sell/buy.
What About Other Buyers Offers?
One of the most common questions I get asked as a buyers agent in a firm to sellers market is about offers from other buyers. So I thought I would some pointers here for buyers so you understand.
- I will not know if other offers have been made – ever. (Unless the property went under contract and then came back on market)
- Therefore I won’t know if you are in a competing offer situation.
- The listing agent might tell me if there are competing offers, then again he/she might not. (Only with permission from their client will they divulge some or all of this information.
- If other offers are made and we are aware of them we don’t get to review the terms. (Again the listing agent will reveal information only at the instruction of their client.
- These rules apply even when the listing agent is also your buyers agent (Dual Agency).
- If there are other offers, price alone is not the defining reason one offer wins over another, it could be other parts like a more convenient closing date, or a cash offer.
- The listing agent is not obliged to tell us why without permission from the seller.
- If another offer is accepted the price the home sells for is only known after closing. Never Before.
Once The Offer on Your Barrington IL Dream Home is Accepted
To get things moving a buyer needs to know what’s expected of them and what’s expected of their agent. Within 24 hours of an accepted offer, a copy should have been sent to you as the buyers by us. We endeavor to get this task done in much less time than that!
We’ll also be forwarding a copy over to your Attorney. If you have not appointed one yet, this is the first and most important task you have to do.
The listing agent’s responsibility is the same regarding the accepted offer. They or their office have the additional task of marking the property as under contract on our MLS system. Now it will show there is a contract but the property may still be open for showings. That decision lies with the seller. Why? At this point there are steps in place that need to be achieved, we call them contingencies. Until all contingencies are met a sale can fall through. It’s in a sellers best interest to keep his home open to viewing, whether you like it or not.
Your next task is to identify and book your home inspection and any other inspections you desire. We’ll talk about that next time. The final thing you must do now is write your earnest money check, to be delivered usually to the listing office; and make sure you have enough money in your checking account to honor it! Yes it will be cashed. Remember it’s like a deposit towards your purchase and you’ll see it applied to the cost of the property on your HUD1 at closing.
Working with a full time experienced buyers agent will always give home buyers a distinct advantage. Part time agents may cause you to lose the Barrington home of your dreams. That’s especially true in markets that are firm and leading towards sellers.
The last thing you need is to see your dream home sell while you waited for your agent to be available to put your offer together.
Not all offers work out, sometimes an impasse on terms is reached or you might be battling with other buyers for the same home. We are here to help guide you forward, whatever the outcome.
I can be reached at 847-363-3686 if you are ready to start looking for your dream Barrington home. Stay tuned as we’ll soon delve into the next steps of your contract, namely Attorney Reviews and Inspections.