Writing An Offer To Purchase Real Estate

Just found the home of your dreams and wantagent.
to purchase it? It's time then to write an offer toInclude your financing terms if it's FHA, VA,
purchase a real estate property. The processconventional, contract of sale or assumption of
needs careful study, research and should not bemortgage. You may also include the maximum
made in a rush. Remember that your purchaseinterest rate if you wish.
offer is critical in negotiating a sales contract withContingencies are essential as well since these
the seller.serve as your protection should the deal fails to
The purchase offer is a very important legalpush through. These written clauses will allow you
document that details the price you are going toto cancel the contract without penalty in case
pay for the property as well as several termssomething goes wrong during the negotiation.
and conditions such as the mode of payment -- ifCommon contingencies include obtaining financing,
it's going to be cash or financed by a lender, theproperty appraisals and inspections done by
down payment, the inspections to be conducted,professionals to ensure that they pass your
timeframe, what personal property will bestandards and that the property you are buying is
included, the closing costs and who will pay forin good condition.
them, terms of cancellation, any repairs you wantBe specific about dates and timeframes. The
done, the date of closing and possessing theexpiration date of the offer should be stipulated
property and other contingencies.and the seller should be given enough time to
In writing the offer, your aim is to get what yourespond to the offer. Both the buyer and the
want but it's also best if you put yourself in theseller have to agree on the closing date. For more
shoes of the seller. Anticipating the seller'sinformation on purchase offer expiration, check
reactions will give you a better perspective inyour state contract laws.
deciding what conditions to consider in your offer.The date of possession of property by the buyer
Be sure that you use the proper form as eachshould be clearly stated to avoid confusion and
state has its own laws on real estate.other problems. Will it be on the day of closing or
One of the most important considerations ina day after or two to three days after closing?
writing the offer is your purchase price. BeThe buyer and the seller have to agree on the
specific and realistic about your price. If you knowdate of occupancy. But normally, a seller is given
that there are multiple offers, consider offering aup to three days to move out of the house and
higher price or making a big down payment to getturn over the keys and possession to the new
the seller's nod.owner.
Making a reasonable initial deposit or downStipulate in your purchase offer as to who will
payment is also vital in a purchase offer. You canpay the necessary fees like title, escrow, county
pay in cash, personal check, cashier's check or byor city transfer taxes and closing costs. These
using a personal property, real property,fees may be shouldered by the seller or the
mortgage or promissory notes. Specify thebuyer or split by both. If you're not sure about
person who will keep the deposit. Normally, it's athe custom in your area, consult a real estate
third party like the seller's attorney or the buyer'sagent or lawyer before you write this portion.