The ins-and-outs of making an offer

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    Purchase contract (offer and acceptance):

    In negotiating the purchase of your new home, the first step is to make an offer to purchase. The offer should be in writing on a standard Board of Realtors form and accompanied by an earnest money check to show good faith. The offer includes:

    • The amount you are willing to pay
    • Financing terms
    • Any personal property specifically included
    • Loan commitment date
    • Closing and occupancy date
    • Other contingencies, including inspections

    The more competition there is for the home, the higher the offer should be- sometimes higher than the asking price. The seller will not always accept the offer the first time. If the seller does not accept the first offer, then we will continue to negotiate until both parties agree on the terms. When both the seller and the buyer agree, it becomes a legal document. The buyer completes financing and arranges an inspection, and all inspections must be completed within a specific time frame. Our closing coordinator will assist you in this process to ensure deadlines are met and all parties are working on their piece.

    Earnest Money Deposit:

    At the time of a written offer, you will be required to make a deposit in the form of a personal check or cashier’s check. The money will be kept in the trust fund account stated in the contract, and it represents your sincerity in the attempt to purchase. It is fully refundable if the offer is not accepted, if your loan is not approved, or if the seller does not meet a specific condition of the contract. You should anticipate a minimum of $500 for homes under $100,000. In homes over this price range, you can expect to deposit one to five percent of the purchase price. When you close on your home, this money will be credited to you as part of your down payment or closing costs. If it exceeds those amounts, the balance will be refunded at closing.

    Title Insurance:

    When property is sold or refinanced, the lender and or buyer needs a preliminary title report to see exactly what liens and encumbrances are against the property. A title report includes these items:

    • Easements of record
    • Restrictions, covenants, and conditions,
    • Liens and/or judgments,
    • Exact vested owner of record, and
    • Legal description

    When the sale of the property is final and the title company has all the documents, they will issue a title insurance to the new lender showing clear title to its property. If the buyer would like to purchase title insurance, they are able to at their discretion. A buyer can purchase title insurance at the time of closing through the title company that is closing the sale.


    **We are a local Commercial and Residential Real Estate Brokerage and team. Our mission is to give Western Kentucky buyers and sellers an exceptional real estate experience! The advantage of working with our team is having a group of professionals who are skilled and specialized to serve your needs versus an individual agent trying to be a master of all trades. Innovation, creativity, and a consultative style drive our process that will help you effectively and efficiently, whether it’s residential or commercial real estate. For more information contact us directly at 270-908-0020 or**

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