Placing an offer - what to negotiate besides price? (clause, agent, mortgage)

[nycgirl610]

My husband and I are first-time home buyers and are ready to make an offer on a place. We aren't using a broker (too late on this place we like because we had called the listing agent directly), have done our own comps and have a good idea of what we would like to pay.

We plan on asking the listing agent to send us the form they use and will modify accordingly.

Besides for the price, what other things should we negotiate at this stage (i.e. appliances, closing costs, home inspection, etc). Or do those things come after the offer price has been accepted and when we're ready to draft the purchase contract?

Thanks!

[wileynj]

Originally Posted by nycgirl610

My husband and I are first-time home buyers and are ready to make an offer on a place. We aren't using a broker (too late on this place we like because we had called the listing agent directly), have done our own comps and have a good idea of what we would like to pay.

We plan on asking the listing agent to send us the form they use and will modify accordingly.

Besides for the price, what other things should we negotiate at this stage (i.e. appliances, closing costs, home inspection, etc). Or do those things come after the offer price has been accepted and when we're ready to draft the purchase contract?

Thanks!

Put your offer in and ask for everything! This way you take away all the seller's bargaining tools . What part of Jersey? I hope it's not my house..lol

[FLBob]

Typically an offer will contain:

• offer price
• earnest money deposit- escrow deposit
• who will handle closing and holding escrow
• mortgage terms unless your offer is cash
• who's paying for title insurance - who's selecting the title company
• Who's paying state fees if any.
• whether the seller is obligated for repairs, or an as is offer with right to inspect
• if the seller is obligated for repairs to what amount (percent of contract price or a fixed dollar amount.
• if it's an as is with right to inspect then what dollar about of repairs is the buyer will to take on.
• Time frames for accomplishing home inspections.
• When is closing

There are other issues that you should work through in the contract.
If you are not working with a real estate agent then you should be working with a real estate attorney.

[kimrocktherealtor]

You could negotiate for a seller assist for your closing costs, you could negotiate things like appliances, you can negotiate your settlement date.. you definitely want to have a clause in there that your offer is PENDING a home inspection - thats a MUST.. don't let the sellers agent write up your offer w/o that in there, trust me.

[palmcoasting]

(too late on this place we like because we had called the listing agent directly),

I don't understand that part. You can have an agent. Just because someone showed you the house, they can't stop you from having your own representation. Either the listing agent, with permission, is representing both of you or you can go out and get your own representation.

[Lacerta]

Also, I don't know about New Jersey, but in many states, agents aren't allowed to let unlicensed persons use their forms. Which means if you aren't having the agent write it up for you, you have to write one up from scratch.

[Lacerta]

For more ideas, in Idaho, the required elements are:

Terms and conditions (this would include things like price, and many of the other items FLBob listed above)
Earnest money form and amount
Name of the broker responsible for the transaction
Representation information (who is representing buyer and seller)
What happens to the Earnest money if either party forfeits
Signatures
Legal description of the property


I looked at the New Jersey code, and can't find a comparable list. It looks like the real estate section is 45:15

[acegolfer]

Here's what you have to do now.

Never use the seller's agent to represent you. This is a common rookie mistake.

If you can't get your agent for this house for some reason, then just walk away before making an offer. I guess you got emotional with the prospective home, but believe me there are tons of houses out there.

I had a contract on a house that I thought was ideal for my family. Unfortunately, the seller defaulted. I thought I'd never find a house like that. But guess what? I found another house and moved in 3 months ago. My family loves this house. I'm sure you will find another one soon. Remember it's buyer's market.

[tamitrail]

Originally Posted by nycgirl610

My husband and I are first-time home buyers and are ready to make an offer on a place. We aren't using a broker (too late on this place we like because we had called the listing agent directly), have done our own comps and have a good idea of what we would like to pay.

We plan on asking the listing agent to send us the form they use and will modify accordingly.

Besides for the price, what other things should we negotiate at this stage (i.e. appliances, closing costs, home inspection, etc). Or do those things come after the offer price has been accepted and when we're ready to draft the purchase contract?

Thanks!

Since you are a first time buyer, you REALLY need someone to represent you. You would be making a huge mistake relying on the listing agent...they are not looking out for you, only THEIR client. Please follow the advice of everyone who said to get someone to represent you before you make that offer.

[TexasHorseLady]

I agree - get your own agent, explain the situation to them, and let them deal with the listing agent. If the listing agent is the one who told you that you can't have your own representation because you called them first, shame on them!

As first time home buyers, yes, you really do need someone who knows the ropes in your corner.