What’s in an Offer?
Now that you have found a home you wish to purchase, the next step is to make an offer. The real estate agent will have a printed form that will list all the legal talk, leaving blanks for the pertinent information. As with any legal document, be sure you understand this document before signing.
The primary item in an offer is the price you are proposing. This price is often a negotiating tool, setting the stage for a give-and-take that will eventually lead to final sales price. The price the buyer offers will depend on many factors: the market conditions, what comparable properties in the neighborhood have sold for, the condition of the home and your budget. Your realtor is an invaluable guide during this process.
The buyer must also list in the offer any concessions he wants the seller to include. For instance, will the seller be asked to cover any of the closing costs? Also will certain items, like appliances, be included in the price.
There are also stipulations on the sale put into an offer. The sale can be contingent on an inspection of the property, the mortgage approval of the buyer, or the sale of a buyer’s other home. Also an offer states how soon the closing will take place after an offer is accepted.
Finally an offer will limit the time a seller has to respond to the offer. The offer is no longer binding on the buyer after that period of time ends.