Step by Step Guide to Writing a Home Purchase Offer

Top Tips for a Home Purchase OfferOnce a prospective home buyer finds the perfect home, the next step is submitting a written offer. There are a number of pieces of information that should be included in the offer. Making sure that all the considerations below are covered can ensure an offer that fits the buyer’s circumstances and is more likely to be accepted.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

First Part: Money Matters

It starts with making an offer. Buyers should consider local market prices, how long the Apple Valley home has been for sale and how much they are willing to pay. The buyer should also include how long the seller has to consider and when the offer expires. Your real estate agent can assist in this.

Then, handle issues like the deposit. Most states require a good faith deposit at the time an offer is made on a home. This deposit will be held in escrow by a third party. However, in some states, the seller is entitled to keep the deposit in certain circumstances if the sale does not go through. Spell out how the down payment will be made and whether there are potential delays that should be considered contingencies. For instance, if an asset like a retirement fund needs to be liquidated for the down payment, the offer letter is the place to discuss this.

This is also the time to lay out financing terms. The buyer should discuss the maximum interest they are willing to pay as a contingency of the offer. They should also include full details regarding mortgage, down payment and the deposit.

Concessions and Contingencies

If a buyer wants the seller to make improvements to the property, now is the time to ask. These can include updated HVAC systems or repairs to roofing or foundations. The buyer can also ask the seller to pay closing costs.

Contingencies when buying a home should also be discussed at this time. If there are any factors that could affect the sale, these should be laid out in the home purchase offer. These can include factors on the seller’s side such as the presence of lead paint or asbestos. They can also include factors that can affect the buyer’s willingness and ability to make the purchase.

Dealing with the Final Steps

The next thing the buyer will set out is when they want everything done. Stating when a buyer wishes to close will affect the appeal of the offer. Thirty to forty-five days is common. Closing at the end of the month can save on fees. Closing costs should also be discussed at this time.

The offer letter should also include details about how and when to take possession. Taking possession of the home is the area where problems are most likely to arise. Having details spelled out here can avoid trouble later. The offer should say how soon after closing the new owners would like to take possession of the house, as well as what happens if the buyers are prevented from taking possession at that time. Detailed contracts now mean fewer hassles later.

Once these details are in place, the seller can say yes, no, or make a counter offer. By making sure that the buyer has covered every detail in the offer letter, the chances that these next steps will go smoothly increases. A good offer puts the buyer that much closer to a house they love on terms that fit their budget and their goals.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

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