MAKING AN OFFER

+ Understanding Your Options

OFFERS

We know that a seller’s market can be both fast paced and intimidating.

That’s why we built this guide for you.

We wanted to put tools in your buying toolkit to help you make the best impressions with your offer.

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THE OFFER

OVERVIEW

A purchase agreements is a legal document that sets the foundation for the rest of the transaction. It’s what you’re willing to pay, investigate, and do in order to purchase a property.
Once it’s sent for consideration, the sellers can accept, counter-offer, or decline your offer.
Until the terms are accepted by both sides, signed, sealed, and delivered it can be withdrawn by either party. This is why we’re super particular about getting signatures and electronically tracking the purchase agreement to confirm delivery.

AN ACCEPTED OFFER MUST HAVE

1

The agreed to purchase price

3

When and how the property will be conveyed

2

The full description of the property

4

Signatures of acceptance by everyone

IMPORTANT TIMEFRAMES

  • Requested Response from Seller: Whatever timeframe you request.
  • Writing the earnest money check: Within 2 days of the offer being accepted.
  • Inspection period: 10 days from the offer acceptance date.
  • Reviewing Title Work and Well / Septic Results: 3days from receiving the report.
  • Ordering Appraisal: 3 days from completion of Inspection Period.
  • Loan Processing: Typically two weeks from the completion of Inspection period.

BUYER PROTECTIONS IN OFFER

Financing Protections

Your ability to get a loan is protected in the financing section of the purchase agreement. So if you are not able to get a loan under the terms written in the contract (including it not appraising) you are able approach the seller to negotiate or walk away.

Inspections

The purchase agreement allows for 10 days after acceptance for the buyer to conduct any and all inspections with any professionals they choose on the house. If health and safety issues are found that weren’t seen during the initial showing you are able to approach the seller to negotiate or walk away.

Title Insurance

The seller is responsible for providing clear title. That means no debts or requirements remaining on the home. Once you get a preliminary report of the history of title, you will have 3 days to review the results.

Well and Septic Systems

The seller is responsible for coordinating well and septic reports about contaminants, functionality, and required repairs for your review. Once received, you will have 3 days to review the results.

Closing

The newest version of the West Michigan Purchase Agreement allows for an additional 15 days after the noted close by date to meet any lender or title issues that may be delayed.

Possession

There is a special line in the West Michigan purchase agreement that both states the home must be in broom-clean condition AND you can add a per day penalty if possession isn’t transferred on the agreed upon date.

PRICING EXPECTATIONS

As you can see from the average sales price chart below, we are in an increasingly appreciating market. Below is a quick guide of what to expect as a buyer for pricing based on different active listing phases.

Phase 1

The listing is on the market 1 to 7 Days

  • Expect to pay between 10%-20% over list price.
  • Seller friendly terms from higher and best
  • Expect to be against multiple offers

Phase 2

The listing is on the market 8 to 14 Days

  • Expect to be at or very near list price
  • Sellers are still looking at some of the terms on highest + best page

Phase 3

Listing is on the market 14 Days +

  • All terms negotiable

HIGHEST + BEST

Tools for making your offer more attractive to sellers.

Offer above list price
don’t ask sellers to pay your closing costs
offer to pay one or many of the seller’s closing costs
reduce your inspection period
conduct a Pass/Fail inspection
Use an Escalation Clause
This is where an offer starts at a bottom price and the buyer agrees to beat any other offer by a certain amount (usually $1K) up to a specified top number.
Offer an appraisal gap guarantee
A buyer commits to paying the difference between the offer price and an appraisal coming in low up to a certain amount in cash at closing.
possession after closing
Sellers still need a place to go, so offering them time in the home after closing will help with their home search too.
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THE IHEARTGR DIFFERENCE

COMMUNITY

While touring new neighborhoods we love pointing out local favorites and community ammenities.

RELATIONSHIPS

We maintain a solid reputation within our Realtor Board to make sure your offer gets full consideration.

STRONG OFFERS

Our agents have access to a full list of clauses, Broker support, and trusted local partners to write your offer as airtight as possible.

Seller Motivation

When writing an offer, IHeartGR will contact the listing side to learn as much as possible about seller’s motivation to make sure we are writing the offer to suit their priorities.

OFFER PRESENTATION

Our Agents work hard to put your offer in the best light.
Each offer presentation includes an Executive Summary where we highlight the strongest points of your offer and the team of professionals representing you in the process.
Our presentations also include all offer documents, your proof of funds, and confirmation of presentation to the sellers with feedback.

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