BUYING A HOME PART III. MAKING AN OFFER: PURCHASE AND SALE AGREEMENT
In order to make an offer, we need to fill out purchase and sale agreement (PSA) along with all the appropriate addenda. Then, buyers agent will deliver an offer to the seller's representative. The seller, in turn, may accept the offer, reject it or make a counteroffer.
Because counter-offers are common (any change in an offer is considered a counteroffer), it's important for buyers to remain in close contact with their agent during the negotiation process so that any proposed changes can be quickly reviewed.
PSA is a five page document that puts together terms and conditions of the home buying process. Realtors in WA have to take a mandatory 8 hour class on a five page doc, isn't it crazy?! Before presenting your offer, realtor will ask you about earnest money deposit. What on Earth is that? Earnest money deposit is an amount of money that buyers offer to the seller to show how serious they are about purchasing the house. That's the money you agree to loose in case you walk away from the transaction without any legal reason. But if you proceed with the sale, deposit will go towards your closing costs. There is no right or wrong number, but the idea is this: the larger the deposit, the more seriously seller will look at your offer!
In the PSA realtor will record things that you want to be included in the sale, like appliances, play equipment, yard art, etc. You will ask for a certain closing date, title and escrow... It was a very brief overview of the offer process. Pay attention, there is much more coming))) In the next article I will tell you about contingencies that we might include with the offer.