Let’s say a home is asking $500,000 and a buyer makes an opening offer of $475,000. Here are a few things that are typical under this scenario:
- The eventual price is probably going to be $487,500- split between asking and initial offer
- That price will often be renegotiated as a result of a home inspection
- The buyer is going to submit his offer via docu-sign and the seller will respond initially to the offer verbally. The buyer will counter verbally as well. Until a price is agreed upon- everything is done verbally.
- Once a “meeting of the minds” occur- the offer is sent back to the buyer with all changes initialed that the offer can be presented to seller in a fully executed format. Seller will then sign via docu-sign as well. Seller may continue to show the house, but may not enter into another contract unless the first contract is dissolved.
- Seller signs. Once this happens- the contract is fully executed and THAT is the day in which the “clock” starts in terms of when the 2nd deposit is due, and when the home inspection needs to be done, etc
- Although a seller may negotiate an “AS-IS” clause into the contract- that does NOT prohibit buyer from having a home inspection and cancelling the deal if they so choose (of course IF done within the time frame allotted to complete inspections)
- NO terms of the contract are valid or enforceable unless in writing. Period.