I've written an offer.now what?

First of all, congratulations are in order! You have just taken the most important step toward property ownership.you have written an offer! Land has proven to be a wise investment and a good hedge against inflation. Land is one of the only investments you and your family can use and enjoy while it's value increases .

You are probably feeling numerous emotions right now: Joy at finding what you wanted, excitement, and anticipation at telling friends and family about your new property.

You may also be feeling a bit of uneasiness and thinking "oh no, what did I do?!" Psychologists call this feeling "Buyer's Remorse". It is a normal response, and almost everyone gets it. The feeling will go away, and you will once again feel excited about the property, just like you did when you saw it for the first time.

What will happen with my offer?

Your Agent will take your offer to their managing broker, and he or she will check it over to make sure it is complete. Within 24 hours the Broker will submit your offer to the seller, and your earnest money will be placed in the brokerage trust account. The seller will then consider your offer. He/she has 3 options...

A. Reject The Offer - The seller's first option is to reject the offer. This usually doesn't happen. No one gets what he or she wants if an offer is rejected. Some possible reasons for rejection of an offer include a very low purchase price or contingencies the seller cannot or is not willing to meet.

B. Accept The Offer- Option number two is for the seller to accept the offer as written. Many people assume that if the offer is accepted as written they made a bad deal. That is not necessarily the case. A good broker will explain to the seller all the good points of an offer and how accepting the offer will benefit the seller. Remember that sometimes a broker has to help a seller be realistic just as much as he may have to help you, the buyer, be realistic. There is a point where the extra time and paper work just isn't worth the few extra dollars the seller might make by countering your offer.

C. Submit A Counter-Offer - The seller's third option is to counter your offer. It is important to realize that a counter offer is not the seller saying "no". The seller is in fact saying, "Yes, but we need to work out some details". The usual reasons that an offer is countered are purchase price, closing date, or a contingency that the seller would like to see refined or eliminated. Should the seller submit a counter offer, you then have the same 3 options that the seller had with your original offer.

What do I have to do?

While the seller is considering your offer you have obligations as well. If you haven't been pre-approved for financing with a bank you will need to start the financing process right away.

Your Agent can provide you with loan applications from banks or finance companies with whom they have had previous experience. You can, of course, go to your local bank for financing if they are willing to help you.

Be aware that many out of state banks will not finance a vacant land purchase in Wisconsin, or any other state they where they don't have an office.

Your financing needs to be completed in a timely manner. The bank may need tax or employment records or other information to complete financing. Your financing may take as little as a day or it may take a week or more.

After Financing Is Established

When the financing is completed, the bank will notify you and your Land Specialist. The bank, the seller, and the real estate agency will all have closing documents that need to be prepared. At this time all you, the buyer, needs to do is sit back and relax. The process is almost complete.

Your Title to the property needs to be ordered by the broker. Preparing for closing will take about a week. A location and time for the closing need to be agreed upon by all parties. This is why it is beneficial for you to finance through a bank recommended by your agent. Some banks will send the bank documents to the real estate office if they have had experience with them. If this happens, you won't need to close at the bank. You can schedule your closing when it is convenient for you, not the bank. This can mean closing on a weekend or in the evening if need be.

The closing is the easiest part of the process. The bank will have some documents for you to sign. There are a couple of other documents that will transfer ownership of the property to you that will also require your signature. All parties that will be on the Title need to be present at the closing.

You need to have a certified check for the funds you are required to bring to the closing. The closing shouldn't take more than 10 or 15 minutes (depending on how long it takes the broker to explain all the documents to you). That's all there is to closing; you are now a proud property owner!

Enjoy Your Property!

Again let me congratulate you! You are one of the many that had a dream, and the few that took the steps necessary to make it come true. Be secure in the knowledge that you have made a wise choice and are well on your way to making memories that your family will treasure forever.

At any point in the process if you have any questions, or are unsure of what is happening, please call, I will have the answers that you need.

Sincerely,

Trevor Maki
Land Specialist