Understanding the
Atlanta Home Buying Process


Step #7 - Making an Offer

When you find your perfect home and you're ready to make an offer, we will research the property and the local area, and then provide you with information that will help you make an informed decision.

For example, we will research the Multiple Listing Service (MLS) and the county tax records to find all recent home sales in the area. Since sellers can list their house at any price they wish, this information will help us determine the true value of the property.

We will also ask the seller's agent for a copy of the "Seller's Property Disclosure Statement" and "Lead-Based Paint Exhibit". These documents will tell you what the seller knows about the property, such as when the home was built, the age of the roof and water heater, whether or not there is lead-based paint in the home or leaks in the basement or the roof, when the chimney was last cleaned and the septic last pumped, and if there are any known problems or defects in the home or on the property that you should know about. Keep in mind that every home has issues, even brand new homes. As long as the home is structurally sound, all other issues can usually be corrected easily.

When you are sure that this is the perfect home for you, we will complete all of the paperwork for you. We will explain the paperwork to you, give you an opportunity to read every paragraph and ask questions before you make any offers or sign any contracts. We will also recommend additional items to include in the offer, such as a home warranty and closing costs. And we will ask the seller to pay for them so you don't have to. A home warranty will protect you from many unexpected and expensive repairs, and if the seller is willing to pay your closing costs, you can save hundreds, or even thousands of dollars.

How you ask for these items is critically important if you really want the seller to agree, but don't worry, we have done it successfully for many years.

After you sign your offer, you will need to write a check for the earnest money.

What is earnest money?

Earnest money is the money you include with your offer to show the seller that you are a serious buyer and that you intend to live up to your side of the agreement. The earnest money will be held by one of the brokers and is typically applied to your closing costs and down payments when you close on the home. If you or the seller terminate the agreement in accordance with contingencies in the contract, your earnest money will most likely be return to you; however, it's important to understand that you could lose your earnest money if you back out of the agreement for any other reason. If this occurs, the earnest money will be given to the seller.

How much earnest money should you include with your offer?

The earnest money amount is negotiable, but $1,000 is very common in the Atlanta market. Some buyers offer more earnest money (such as 1% or 2% of the sales price) so their offer stands out from the crowd, but that's up to you. Some sellers will require a specific amount with your initial offer, and other sellers may request additional earnest money when they present their counteroffer. Since every transaction is different, we will keep you informed and help you every step of the way.

Step #8 - Negotiating the Best Price and Terms >