First of all, congratulations are in order. You have taken the most important step toward property ownership by writing an offer with me. Land has always been a wise investment and a hedge against inflation, and it continues to be. Land is one of the few investments you and your family can use while it increases in value.
What will happen to my offer?
When I draft an offer for you, I will submit it to the seller, and your earnest money will be deposited into the brokerage trust account for safekeeping. The seller will carefully consider your offer.
He or she has three options:
Rejection . . . The seller may reject your offer. It is unusual that this will happen. After all, the seller wants to sell this property. Some reasons for rejecting an offer may be that the purchase price is too low or the offer has contingencies that the seller cannot meet. It may also be that a competing offer has come in that is more attractive.
Acceptance . . . The seller may accept your offer as written. Many people feel that if their offer is accepted as written, they have made a bad deal. This is not the case. A good broker will explain to the seller all the good points and how accepting your offer as written is in the seller's best interest. If you have written a strong and fair offer, oftentimes, brokers are able to point this out to the seller. There is a point where the extra time and paperwork are not worth the few extra dollars a seller may gain by countering your offer.
Counteroffer . . . The seller's third option is to counter your offer. It is important to realize that a counteroffer is a "yes." There are a few things that need to be worked out, but the seller is saying he/she wants to work with you. The usual reasons for a counteroffer are purchase price, closing date, or contingencies that the seller would like refined or eliminated. Should the seller submit a counteroffer, you have the same three options I have written about above.
What do I have to do?
While the seller is considering your offer, you have obligations as well. If you have not pre-approved your financing, you should start the loan process immediately. I am prepared to provide you with a list of banks that may be able to work with you in financing your new land. These are financial institutions with which I have had experience and know to be professional and competitive. You should be aware that many out-of-state banks will not finance land in Wisconsin. You should be prepared to provide employment and income information. Your financing approval can be ready in as little as one to three days from the time you submit your information.
When your financing is complete, the bank will notify you, and you will need to notify me so that I can let the seller know your financing is approved. The bank, the seller, and my office all have documents that need to be prepared. Your Title Insurance Policy has to be ordered, and all closing documents need to be prepared. Preparing for your closing takes about one week. At this time, all you need to do is sit back and relax. We're taking care of everything for you.
Closing is the easiest part of the process. The bank will have your loan documents ready for your signatures. There are only a few forms that require your signature, along with the seller's, and the property is transferred to you.
You will be contacted with the details about the closing as to time, place, and what amounts, if any, you need to bring with you. If you are required to bring payment with you, it should be in the form of certified funds. A cashier's check from your bank is best.
If, at any time in the process, you have any questions, I am available to take your call. I have the answers you need and am happy to assist you.
