Did you find the one? Make an offer!
Once you have determined a price to offer for the home, you can submit your offer online. Unfortunately it’s not as simple as writing down a price and sending it to the seller. There are a lot of things that must be included in an offer.
The Purchase Contract
The purchase contract is many pages long and is more than just the price. There are a lot of conditions that must be agreed to, as well. Here's a look at a blank form:
That contract looks pretty intimidating, doesn't it?
Fortunately, YELLOW helps you complete every form. All forms are filled out in a program that walks through the document with you, highlighting the sections you need to fill in and providing explanations for those fields.
We've also created a 'Purchase Contract Guide' that gives an explanation for each section and also includes links to other websites with more information on that section. It's linked below:
Lastly, we created video explanations for every form, walking you through each section. Here’s our video for the Purchase Contract:
Here's a link to the all our other videos:
Don't forget - a real, live person is always here to help! We can walk through any form with you when you contact us through one of our many contact methods.
In the purchase contract, the topic of earnest money gets a lot of questions. You can find out more about it in the resources cited above, but here is some general info to help.
Earnest money is also referred to as the 'escrow amount' and it is a deposit made with your application. Sometimes the deposit is made at the same time as the offer, but it’s more common for the deposit to be paid within three days of your offer being accepted.
The escrow amount is often $1,000 or $2,000, but serious buyers sometimes make a larger deposit to show their interest. These funds are held in escrow with a title company until closing where it will be applied to your down payment or closing costs. In most cases, you can get this money back if the deal falls through, as long as you abided by the terms of the contract.
It is very common for the seller to reject an offer. It’s also very common for them to make a counter offer. With YELLOW, you can negotiate back and forth as many times as you wish until you reach an agreement or someone walks away.
There's a legal form already created just for that. Here's our video guide on it:
Once your offer is accepted, you both sign the purchase agreement and you’re now under contract – which is also often referred to as “in escrow” or “sale pending.”
Don’t get too excited yet as the real work is just getting started.
A copy of the contract goes to the lender and another to the title company and they get to work. They will work on your mortgage, other inspections, appraisals, or anything else built into your purchase agreement. Problems can arise and it’s possible you'll need to further negotiate for price adjustments, repairs, changes to the closing date, and so on.
That brings us to pre-closing.
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