Offers To Purchase Real Estate
Trying to buy real estate? One
of the most common misconceptions among home buyers occurs when it
comes time to making an "offer to purchase real estate" or a "bid" on a home. Many believe that
even though they have tendered an offer to buy real estate to the sellers, that their
options are still open. To some degree, this is correct. If the seller
rejects the offer to buy real estate from him, counteroffers your offer, or simply does not respond,
options are still open. You, as the buyer, can accept the counteroffer, make another offer to purchase, or simply move on.
If, however, the seller accepts the "offer to purchase real estate" (and you are notified of its
acceptance) then a legally binding contract has most likely been
struck. In the majority of cases and localities, there is not even the
need for additional paperwork -- the signed offer becomes the contract.
Your options now are more of the "do we want to paint the master
bedroom before or after we move in?" Once the offer has been accepted,
the "lets think it over just a little bit more" phase has passed. This
is why it is crucially important to make sure that all of your bases
are touched and all of your intentions made clear in the offer -- it can
become a binding contract in the blink of an eye and a stroke of the
seller's pen.
Some items that need to be addressed in an offer to buy real estate are:
- The proposed selling price (your offer).
- Any concessions you desire the seller to make.
- Any
financing contingencies (for example, subject to you being able to
obtain a satisfactory mortgage. You can go as far as to state maximum
interest rates, specific terms, etc.)
- Any home inspection contingencies (for example, subject to an acceptable whole house inspection report).
- A
clear definition of precisely what is to be included in the sale. Don't
simply assume that items such as porch swings, fireplace doors and
refrigerators are included. Doing so usually causes some unpleasant
surprises on moving day. If there is any question, be specific!
- The amount of earnest money (your deposit) that is being tendered with the offer.
Since an offer to purchase real estate can become a contract very quickly, it is important to understand how they are two sides of the same coin. See the discussion on contracts for more information.
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