One of the most important steps in buying a home is making an offer, as verbal agreements are not legally enforceable in real estate sales. As most areas in the country would be classified as sellers’ markets at the moment, the pressure is on for buyers to make sure their offers are as attractive as possible. Your real estate agent will usually have a several standard forms for you to fill out, and these are regularly updated to keep up with changing laws. Remember that your purchase offer or contract must always adhere to state and local laws. Besides conforming to legal requirements, your purchase offer should also specify price and other terms and conditions of the purchase. For example, if your seller has agreed to cover $3000 of your closing costs, put that in writing and include it in your proposal and in the final contract, so that you won’t have any trouble collecting the funds later. Here are a few other things you will need to include when making an offer on a home.
- Address and sometimes a legal description of the property
- Sale price
- Terms—for example, this is an all-cash transaction, or the deal is subject to you obtaining a mortgage for a given amount.
- Seller’s promise to provide clear title (ownership)
- Target date for closing (the actual sale)
- Amount of earnest money deposit accompanying the offer—whether it’s a check, cash or a promissory note—and how the earnest money will be returned to you if the offer is rejected (or kept as damages if you back out of the deal for no good reason)
- Method by which real estate taxes, rents, fuel, water bills and utilities are to be adjusted (prorated) between buyer and seller
- Provisions about who will pay for title insurance, survey, termite inspections and the like
- Type of deed that will be granted
- Other requirements specific to your state, which might include a chance for attorney review of the contract, disclosure of specific environmental hazards or other state-specific clauses
- A provision the buyer may make a last-minute walk-through inspection of the property just before the closing
- A time limit (preferably short) after which the offer will expire
- Contingencies
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
