Writing an Offer (Iowa)

Below is a framework of the basics.... but be sure our section on Submitting Impeccable Offers

Key Considerations to craft your offer:

• Purchase price
• Earnest money amount they are willing to put down
• Closing date Advise them that “settlement date” is typically 30-45 days from “Right now” (time you are writing the offer). 
  • 35-45 days is a good rule of thumb.  Don't rush the date and box yourself into tight inspection and closing timeframes.
  • With that in mind, what is their ideal closing date?
• Pre Approval -Do they have a pre-approval letter? If not, how soon can they have one? 
• Inspections
  • Be sure to check out this section which outlines inspection types, costs, and setting expectations about same:
    • Home inspection—highly recommended.  If they choose not to have one, be sure to document it in writing that you recommended one
    • Radon testing
    • Lead based paint?
    • Septic inspection (if not on city sewer)
    • Response time
    • Price?  Initial offer/ counters/ highest and best
• Personal property
• What items are they requesting?  Anything else that needs to be included with the buyer’s wishes?
• Be specific
• Attorney they would like to use for Title opinion and other transaction legal work?

• WRITING the offer:  
• Create a loop in Dotloop
  • “add loop”
  • Input the ‘MLS’ or ‘address’
    • If possible, attempt to work from the same loop as the listing agent.  This will help with transferring docs back and forth
  • Click add, ‘Templates’
  • East Central Iowa MLS Interactive Forms
    • Select the appropriate loop
    • Affiliated business disclosure
    • Lead based paint pamphlet (if built before 1978)

Making the offer:

• Fill out purchase contract (if stuck here, see purchase contract examples and Vimeo’s)
  • Have the buyer sign the contract via dotloop or in-person
• Ensure Have the buyer sign the disclosures (found in Paragon)
• Advise seller’s agent that you’re sending an offer
• Kindly request from Listing Agent whether or not they have any offers currently. Also inquire on what is most important to the seller: price, terms, repairs, time, etc?
• Send the offer and the disclosures

Monitor:

• Be on the lookout for any time sensitive counters—REMEMBER… time is of the essence in contract negotiations
  • If countered:
    • Determine if your buyer would like to accept, reject, or counter the initial counter offer
    • Counter:  Obtain the “counter offer form” in the Interactive forms

Offer ACCEPTED!

• Fill out the Accepted Offer
• Change dotloop status to—“under contract”
• Ensure that all necessary signatures on purchase contract and disclosures
• Submit loop for review

Once under contract

• Ensure that the sellers’s agent brings abstract to Abstract company within 30 days before closing
• Advise seller’s agent of which attorney will perform Title Opinion (T.O.)
• Obtain T.O. approximately one week before closing – ensure to read through TO to ensure no encumbrances on title
• Inspections—
  • Assist buyer in setting up: radon, home, pest, sewer, etc. inspections
  • Know who the vendors are and ensure to get a copy of all reports to view ASAP
• Read through your contract and know your dates!
  • Put all applicable dates on your calendar as a reminder
    • Financing contingency release
    • Inspection contingency
• Approx one week prior to close
  • Obtain seller statement

  • Appear correct?  Tax credits, other adjustments?