Finding the house of your dreams is only the first step towards
becoming a homeowner. Once you've located the perfect home, you need to make an
offer to buy it. This is not as simple as telling the agent how much you're
willing to pay. Your offer, once accepted, becomes the legal sale and purchase
agreement. As your offer is the prototype for the contract, it needs to spell
out in writing all the terms of the deal, such as whether the offer is
contingent on financing, or you won't be able to enforce those provisions at
closing. The following checklist serves as a guideline of the provisions that
appear in the typical offer.
General Provisions - Rarely Negotiated
of the property.
promise to convey clear title i.e. full legal ownership to the buyer at
for prorating property taxes, utility bills and any other property-related
expenses that are paid either in advance or in arrears between buyer and
of deed to be given - in most transactions, the seller gives a full
clauses and disclosures. Real estate agents regularly update their offer
forms to make sure they comply with state law.
Financial Provisions - Usually Negotiated
terms, for example, all cash purchase or whether the offer is subject to
the buyer obtaining a mortgage for a given amount.
of earnest money deposit accompanying the offer. The amount of earnest
deposit is determined by local custom; your real estate agent can advise
you of the going rate though you may have to pay more to secure a property
in a multiple offer situation. The offer also addresses whether the
deposit is forfeited if you later back out of the deal for no good reason.
about who will pay for termite inspections, specialist surveys, title
insurance and the like.
Timing Conditions - May be Negotiated
date for closing the sale.
time limit, beyond which the offer will expire. Usually, this is no more
than a few days.
Contingencies - May be Negotiated
Contingencies are a series of pre-conditions that must be met before you will
agree to close the purchase. The two most common buyer contingencies are:
which lets you walk away from the deal if the bank does not give you a
green light on the amount of mortgage loan you need.
inspections, which lets you cancel the transaction if the professional
home inspector finds flaws in the property.
What Happens After You Submit an Offer
If the seller likes your offer, he can simply sign it and the offer becomes the
purchase contract. He may also reject it out of hand, explicitly or simply by
letting the offer expire. More commonly, the seller will accept some terms of
the offer but not others. In this scenario, the seller makes a counteroffer
suggesting changes to the original offer. You can accept or reject these, or
make further changes of your own. The process continues until you are both
happy with the offer terms. Tips for Buyers
It's easy to get bogged down in the minutiae of an offer, and many buyers find
themselves arguing over moving the closing date by a couple of days without
looking at the bigger picture. What you give in one area, for example, the
price, you may be able to recoup elsewhere, for example, by getting the seller
to pay some of your closing costs. If the contract is fair overall, then you
have a good deal.
For your FREE consultation in buying a home, please give me a call: 214.454.4646
Author:Stephanie Gonzalez Phone: 214-454-4646 Dated: September 10th 2014 Views: 765 About Stephanie: About Halo
We understand that for many people, buying or selling a home is probably the largest i...
We understand that for many people, buying or selling a home is probably the largest investment decision that they will make in their lifetime. Halo Group Realty LLC thus became active in selling Real Estate in 2008 and was setup to make this process a simple and painless transaction. Your dedicated agent will guide you every step of the way to make purchasing or selling your home enjoyable and exciting… as it should be!
Today, Halo Group Realty LLC is at the cutting edge of technology in offering assistance to those in need of real estate services, and we have revolutionized the method of delivering education to consumers. Halo is established as the place for consumers to get the knowledge and assistance they deserve in the process of facilitating the Real Estate transaction, positioning you in the best possible situation to get the best price when you either to buy or sell. With leadership, innovation and forward thinking, Halo Group Realty, LLC is poised to make a huge impression in the real estate market while providing clients the keys to home ownership.
Our goal is to help make your dream a reality and take away all of the stress that goes along with purchasing or selling your home. Whether you are purchasing new construction, an existing home, or just an open space for future enjoyment, representation by a Halo agent is a valuable tool in making your dream become a reality.