MAKING AN OFFER TO PURCHASE
TAGGED WITH: BUYING REAL ESTATE
HERE YOU GO
When I draft the legal purchase documents, there are five main elements to keep in mind:
Price – this does not have to be the same as the Seller’s asking price. There are many factors to consider, Is the home priced at fair market value? Is there work that needs to be done immediately, Has the home been on the market long? Are homes moving quickly in the area? I will help you determine all of these factors and help you decide on a good price.
Deposit – shows your good faith and will be applied against the purchase of the home when the sale closes. A deposit should be at least 5% of the home’s purchase price.
Conditions – standard conditions can include the following clauses: subject to home inspection, subject to you obtaining financing, or subject to you selling your existing property. However, a condition can specify almost anything. Sellers obviously do not like to have their homes effectively off the market while they wait for conditionals to firm up, so the shorter the conditional period (i.e. 3-5 business days) the better chance the Seller will accept your offer.
Inclusions/Exclusions – your offer may be contingent on including certain home items in the sale, such as appliances, fixtures, and finishing items, if you like it then it can be included.
The Closing Date – the Seller will often specify the date or date range they would like to close on the property and your offer should closely match this. The closing date is the day the title of the property is legally transferred to you and all funds go to the Seller.