After you are comfortable with your financing options and once you have found a home, it is time to make an offer on the property. As the interested buyer, you will work with your real estate agent to execute a formal offer to purchase sheet, or in some cases, a formal sales contract. In either case, the offer is made to show your interest in the property an outline the terms through which you would like to purchase the home.
When making an offer on a home in the areas of Long Beach Island, Beach Haven West, Little Egg Harbor, Tuckerton, Waretown and Barnegat Township, your real estate agent will fill out either an offer to purchase sheet or a New Jersey real estate sales contract. In some cases, usually when there is a bidding war, you may choose to have your attorney write a fully legally binding contract waving attorney review so as to make your offer appear stronger and more serious.
Regardless of how do your offer is made, there are a few items that should be in every offer to purchase. They are:
For example, a home inspection may or may not be included, furniture may or may not be included, you may choose to ask the seller to pay part of the closing costs, etc.
Along with the offer, it is common to include an earnest money deposit. This deposit, usually in the amount of $1000, is not required by New Jersey law and is fully refundable in the event the seller chooses to reject the offer. The intention of the earnest money deposit is to show you are serious about the home and serious about your offer. Should the sales transaction move forward, this earnest money deposit becomes a portion of your down payment. This deposit will be placed in an escrow account of your real estate agent or of your attorney to be held until the deal is ready to close.
When making an offer on a home in the Southern Ocean County real estate market there are a few things you can do to help strengthen your offer. Price is not the only factor a seller will consider. You can offer additional terms which may be attractive to the seller. For example offering to accept the house in “as is” condition may give your offer a priority over another offer. If you are choosing to purchase the home without a mortgage, in other words a cash offer, this is often highly appealing to a seller as it removes the doubt funding may not be available and can often result in a lower sales price. Lastly, offering a quick closing will avoid the seller having to pay additional carrying cost such as taxes, mortgage, insurance, and utilities and therefore may result in a lower sales price. The seller will review with his or her agent your offer in comparison to current active listings for sale in Southern Ocean County as well as recently closed transactions. The seller will either accept, reject or counter your offer. This begins the negotiation between the buyer and seller which hopefully will result in a mutual agreement and permit the writing of a formalized sales contract. Counter offers may be made in writing or may be verbally communicated it however it is important to know that all written offers must be present it within 24 hours to their buyer or seller.