How to Submit an Offer on a House?
By Eddie V. —
Published February 15, 2018
Purchasing a home is a big decision and more often than not, it takes a lot of hunting to find the house of your dreams. But, once you have found the perfect home, the next step is to make an offer on the house. Often, the prospect of buying a new house gets people really excited and they can overlook some very important things when it comes to making an offer on the house.
Buying a house is no simple task and it should be done with precision and with much attention to every tiny detail.
One of the most crucial steps while purchasing your home is making an offer on the house. You need to be well aware of the local market and make sure that the terms of purchase are right for you.
Remember, always make a smart home offer. Walk away if you feel that you are not okay with the terms.How do you make an offer on a house?
❖ Making an offer on a house starts with submitting a written offer. If you are lucky enough, the seller might accept the house offer straightaway. In most cases, however, counter offers are made and there are negotiations back and forth. If the seller refuses to settle on your terms, then you might have to begin another round of house hunting.
❖ A written offer is a legally binding document, so make sure that you have all the important things sorted before you finalize your offer.
❖ There are several different types of forms that adhere to the laws in different states. For instance, there are probate purchase agreements, residential purchase agreements, vacant land purchase agreements, and so on. Make sure that you choose the correct, legally approved form.
❖ Even if you have hired an agent, the price is what you put down on the offer. Do not involve your agent while trying to settle upon a price, but, you can always ask your real estate agent to guide you.
❖ Once you have made an offer, you will be required to make an initial deposit in the form of cash, personal checks or any other financial instrument. The seller will hold on to this initial deposit until the complete payment has been completed. In case the seller decides to sell the property to another party, make sure that there is a clause in the contract that entitles you to get the amount back. You will also be required to disclose the method by which you are planning your down payment.
❖ Your offer letter will also contain standard contingencies and disclosures before the transaction actually moves forwards. The contingencies include details about home inspections, financing, and a number of others. While putting in contingencies, it is important to remember that they can act as hindrances in the progress of the sale. The best way to overcome this is to simply put in only those contingencies that cover what is necessary.
❖ Make sure to specify a date of expiration for your offer. But, before you do, first consult the agent in order to understand the appropriate timeframe within which the seller should respond. Such a clause is necessary in order to avoid delays in the purchase of your house. Also, you should mention the party that is to be notified in case the seller decides to accept the offer. In most cases, the seller notifies the agent in case the offer is accepted.
Once the written offer has been made, you will need to conduct a thorough home inspection in order to make sure that there is nothing faulty with the property.