After receiving a pre-approval letter from the lender, we meet and discuss your housing needs and wants, review the selection process and the forms you will be signing when we make an offer and discuss communities, areas and timetables. We will also talk about the need for various inspections and discuss the team members necessary to complete the homebuying process.
Then…imagine you and I just left a home tour and we’re standing on the street looking back at the property. You have bright eyes and an even brighter smile. The next thing you say is “Nelle, I think this is the one!” In today’s market that means “I can see myself living here…let’s make an offer, if we wait it will be gone!”
Step 1: Review the comparable sales: I’ll send you all the sales that have closed on recent properties within the past 12 months. We will be looking for pricing trends, comparable updates and features. This provides you with info to make an educated offer price and terms.
Step 2: Update Pre-Approval letter: Now that we have a property address and offer price, you’ll need to request an updated pre-approval letter from the lender.
Step 3: Prepare, Sign and Submit the offer: The Tennessee Real Estate Commission has designed the Purchase and Sale Agreement used for negotiating most residential real estate transactions. We will complete this form electronically. My job is to complete the form per your instructions and your job is to read it thoroughly before signing.
Step 4: Sometimes a personal letter to the seller helps: Depending on how competitive the market for this property is, we may need to write a personal letter to the homeowner. Real estate is emotional so if you add an element of humanity to it, it may increase the likelihood of winning the bid.
Step 5: Negotiate the terms of the sale: This is where I come in and experience helps. Once I have your pre-approval letter, signed offer and note to seller, I’ll present your offer to the seller’s agent and the negotiation of the terms begins. In a multiple offer situation, you may be given just one chance to make your highest and best offer. With new construction, further steps may need to be taken as each builder has their own contract (more about that in a later blog).
Once we have a “meeting of the minds,” all documents are signed and the process of executing the terms of the agreement…the fun begins!