Well that was fast. Yesterday Girl Ninja and I walked through a house, only to find us back in the same house two hours later for an inspection. Yes, things progressed that quickly.
We liked the house, loved the lot, and it’s well within our budget. When those three stars aligned, we knew we’d probably be writing our first offer ever as buyers.
It’s exciting and terrifying.
After viewing the property our agent called the listing agent and found out the sellers will be reviewing all offers this morning at 10am. The listing agent also informed our agent that another potential buyer had already conducted a pre-inspection on the property. This meant, if Girl Ninja and I wanted our offer to be seriously considered, we would also have to have a pre-inspection so we could waive the inspection contingency in our offer.
We looked at the house at 10am, and by 2pm we had a full inspection report in our hand and a sewer scope done on the property (highly recommended for old homes). Both reports came back clean with no significant concerns.
OMG. Is this really happening?
Part of me was hoping there would be a huge foundation issue, or that the roof would need to be completely replaced. If there was, we’d be too scared to write an offer because we’d fear the property was deficient. Unfortunately, our home inspector said the home is in great shape, and he found no red flags.
List price on the house is $340,000. It’s a 3 bedroom, 1 bathroom, 1,900 square foot house on a level 0.35 acre lot.
After talking with our Agent and our potential lender we have made the following offer….
- Offer Full asking price, with an escalation clause up to a max price of $357,000 (increasing in $2,500 increments). If you aren’t familiar with escalation clauses it basically means that we will pay at minimum full list for the property, but if they receive other offers, we will pay $2,500 more than any competition up to $357,000. Instead of just offering to pay $357,000 up front, this helps us get the house for a lesser amount if we are the best offer. Of course, we will be putting 20% down.
- We will waive the inspection contingency. Since we had the sewer scope and home inspection done yesterday, we don’t need to include this in the offer.
- We will offer a quick, or long, closing. We are flexible. If they want out in 30 days, we can take possession then. If they want to take their sweet time, we can wait 60 days. I think they have moved out so my guess is they will want to close quickly.
- We are waiving the financing contingency. Yes, I just said that. After doing a good bit of research and talking at length with our lender and agent, think this could be the thing that makes our offer the strongest. It tells the seller not to stress and that we will be able to close the deal. With our strong credit, huge down payment, stable employment, and the house being priced $200,000 less than we were pre-approved for, we shouldn’t have an issue finding financing. Is this a gamble? Sure, I guess there could be some freak reason I can’t think of, that every bank would reject us. If that happens, the sellers get to keep our $10,000 earnest money.
And that concludes our offer. Obviously, if the other party that had the pre-inspection offers all cash, we don’t stand a chance. We think our offer is strong, but reasonable. By the end of today, we should know if the sellers agree 😉
p.s. here are a few pics….