The Buying Process
Offers, Negotiations, Inspections, and Closing
You've found the one. Now navigate from offer to keys in hand.
Making an Offer
Offer Components
Price: What you're willing to pay
Earnest money: Deposit showing good faith (typically 1-3% of price)
Contingencies: Conditions that must be met:
- Financing contingency (loan approval)
- Inspection contingency (satisfactory inspection)
- Appraisal contingency (appraised value meets price)
- Sale of current home (if applicable)
Timeline:
- Response deadline
- Inspection period
- Closing date
Inclusions: What stays (appliances, fixtures, etc.)
Pricing Strategy
Seller's market (low inventory): Offer at or above asking. Fewer contingencies help.
Buyer's market (high inventory): More room to negotiate below asking.
Fair market: Offer based on comps with room for negotiation.
AI Prompt: Offer Strategy
Help me develop an offer strategy.
Property details:
- Asking price: [Amount]
- Days on market: [Duration]
- My assessment of value: [Based on comps]
Market conditions:
- Current market: [Seller's, buyer's, balanced]
- Competition: [Multiple offers expected?]
My situation:
- Maximum I can pay: [Amount]
- How much I want this property: [Scale of 1-10]
- Flexibility on timing: [High/medium/low]
Recommend:
1. Opening offer price
2. Contingencies to include or waive
3. Other terms to strengthen offer
4. Walk-away point
5. Escalation clause considerations
Negotiation
After Your Offer
Seller can:
- Accept
- Reject
- Counter-offer
Counter-Offer Response
Evaluate what changed. Common negotiation points:
- Price
- Closing date
- Contingencies
- Repairs or credits
- Inclusions
Negotiation Principles
Know your limits: Decide your maximum before negotiating.
Don't get emotional: It's a transaction. Walk away if needed.
Everything is negotiable: Price, timing, repairs, inclusions.
Speed matters: Respond promptly to maintain momentum.
Put it in writing: Verbal agreements aren't binding.
Due Diligence Period
Home Inspection
Essential. Never skip this.
What inspectors check:
- Structure and foundation
- Roof
- Electrical
- Plumbing
- HVAC
- Insulation and ventilation
- Water damage
- Safety issues
Attend the inspection. Walk through with the inspector. Ask questions.
Specialist inspections (when indicated):
- Pest/termite
- Radon
- Mold
- Sewer/septic
- Pool/spa
- Roof (detailed)
After Inspection
Options:
- Proceed as planned
- Request repairs
- Request credit/price reduction
- Walk away (if inspection contingency allows)
AI Prompt: Inspection Results
Help me evaluate these inspection findings.
Major issues found:
- [Issue 1]
- [Issue 2]
Minor issues found:
- [Issue 3]
- [Issue 4]
Purchase price: [Amount]
Help me:
1. Understand severity of each issue
2. Estimate repair costs
3. Determine what to request from seller
4. Decide if any issues are deal-breakers
5. Draft a repair/credit request
Appraisal
Lender orders appraisal to confirm value supports the loan.
If appraisal is low:
- Renegotiate price
- Pay difference in cash
- Challenge the appraisal
- Walk away (if appraisal contingency)
Final Steps
Title Search
Title company researches ownership history, liens, and encumbrances.
Title insurance: Protects you from future claims against ownership.
Final Walkthrough
Last look before closing:
- Confirm agreed repairs were made
- Check nothing was damaged/removed
- Verify included items remain
- Test systems work
Closing Day
What happens:
- Sign many documents
- Wire/provide remaining funds
- Transfer of ownership recorded
- Get keys
Bring:
- Photo ID
- Proof of insurance
- Cashier's check or wire confirmation for closing costs
Post-Purchase
Immediate Tasks
- Change locks
- Set up utilities
- File homestead exemption if applicable
- Update address everywhere
Ongoing
- Maintain records of improvements (helps at resale)
- Budget for maintenance
- Build equity over time
What's Next
The other side of the transaction.
Next chapter: Selling your home.