Guro Midtsund
Your REALTOR® in Birmingham, AL Metro Area - eXp Realty
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Homebuying With Guro: Making an Offer

You’ve searched and searched, and now you’ve found THE ONE! That means it’s time to make an offer. Whether you’re a veteran of real estate or a first-time homebuyer, putting in an offer can be stressful and confusing. Read on to discover the in’s and out’s of making an offer on a home!

Drafting Your Offer

Did you know that the offer or contract we use here in Birmingham is 11 pages long? But don’t freak out! I’ll go through it with you step by step. I’ll also provide you with a market report of recently sold homes in the same area so we can decide exactly how much you want to offer. 

Hidden Costs
Let’s dispel the myth of “hidden costs”! Your lender and I will provide a list of your estimated closing costs so you can plan accordingly. We’ll also discuss if you want the seller to cover those costs, which could go either way. If you need a more competitive offer, I’d recommend covering the costs yourself. But if we have some wiggle room, we can ask the seller to cover the closing costs. 

You can also ask the seller to cover a termite bond and a home warranty for the first year, and the closing date and possession date can also be negotiable. Once again, this all depends on how many offers the home has received and whether we need to be aggressive.

Upfront Costs
There are a few things that you’ll need to have the funds for upfront when making an offer - earnest money and inspections. 

Earnest money is a small deposit, a part of the purchase price, that you pay upfront to show that you’re earnest - honest - about purchasing the home. A copy of a check for earnest money will be sent with the offer. But don’t worry - if the sellers don’t accept the offer, the earnest money won’t be withdrawn from your account.

The second thing you need funds for early in the process is the home inspection and other inspections, and I have plenty of people I’d love to recommend!

Let’s Sum it Up!
So, to sum up: Together with your offer we will send:

  • Pre-approval letter or proof of funding

  • Copy of EM check

  • Personal Property Addendum is listing things that are to come with the home.

  • If the property was built before 1978, we’ll include a Lead-Based Paint Addendum.   

  • If you’re moving here from out of state, you might be used to a seller’s disclosure form. Alabama is a buyer beware state, so we don’t have that. More about this in a later episode when we will talk about inspections. 

After you’ve made an offer, the seller can accept it, send a counter offer back, choose another offer over yours, or if you made an offer much lower than the asking price, the seller might straight-up reject it. But hopefully, you and the seller will agree and can finalize the contract!

The closing process can be confusing, stressful, and complicated. That’s why it’s so important to have a great agent on your side! I walk my clients through each step of the closing process to give them peace of mind. And I’d love to help you too!

If you haven't already, go to my eXp website to set up a search for your new home today!

Guro Midtsund is a Realtor with eXp Realty, LLC in Birmingham, AL. This information is deemed reliable but not guaranteed.

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