Jim Gilbert 4501 Spicewood Springs Rd. Suite 1029 Austin, TX 78759 Phone: (512) 342-8744 Mobile: (512) 913-1557 Email Jim

Steps in the Offer Process


  • The Buyer selects a house to purchase.
  • The Buyer’s Agent researches the history of the house (archives), taxes, market activity, neighborhood, etc. to provide the Buyer with the information needed to make an informed decision on an offer.
  • The Buyer sets the terms of the offer: price, down payment and amount to be financed, amount of earnest money, title company, who pays for title insurance and a new survey if needed, the closing date, any special provisions, amount of Seller-paid closing costs, amount of the option fee, length of the option period, etc.
  • The offer is prepared on the correct form, then is initialed and signed by the Buyer. The Buyer gives the Agent two checks: Earnest Money (made out to the title company) and Option Fee (made out to the Seller).
  • The offer is delivered, or sent by fax or email, to the Seller via the Seller’s Agent. Normally copies of the two checks and the Buyer’s loan preapproval letter are attached to the offer.
  • The Seller’s Agent analyzes the offer, prepares a summary of the offer that indicates what the Seller will net from the sale (Seller’s net sheet), and submits the offer to the Seller.
  • The Seller has three options:
    1. Accept the offer "as is";
    2. Reject the offer (and, if desired, ask the Buyer to submit another offer);
    3. Make changes to the offer and submit it to the Buyer as a counteroffer.
  • The process of countering and negotiating continues until Seller and Buyer agree to all terms of the offer (or until either party finally rejects the other’s terms). The contract is “executed” (i.e., becomes legal and binding) when both sides have initialed every change, and have initialed and signed all contract pages where required. All parties are notified.
  • The Agent in possession of the contract when his/her client agrees to the last change, and initials and signs it, enters the date of execution into the contract.
  • The Agent then delivers the executed contract and the Earnest Money check to the title company, where they are “receipted.” The Option Fee check must be given to the Seller or his/her Agent within two days of the execution of the contract. The Seller or his/her Agent must note on the contract receipt page when this fee was received.


"We love because He first loved us." (1 John 4:19, NKJV)

Jim Gilbert, e-Pro®, REALTOR®
Austin, Texas Real Estate Agent
Licensed by the Texas Real Estate Commission (#0536692) to sell Homes & Real Estate in Texas

   


4501 Spicewood Springs Rd., #1029, Austin, TX 78759 ♦ (512) 342-8744

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