Helpful Mortgage And Real Estate Advice

How Do I Make An Offer?

By on January 17, 2014 in Home Buying Advice, Mortgage Videos

When you visit enough open houses to make your head spin, you may be ready to put an offer in on your favorite property. You are ready to invest in your dream home, but an offer is much more than just a monetary amount. To make a valid offer on a prospective home, you depend on the talents of your real estate agent to draw up documents covering all critical sale components, from moving day to maximum offer amount.

The Financial Aspect

One of the first items you must highlight in your offer is the final selling price. You often overbid by several thousand dollars if the property is attracting many buyers. A realtor can guide your decision on exact offer numbers, based on your location and economic conditions. The offer also addresses your down payment, financing details and earnest money. You should put down earnest money if you feel that the seller is unsure of your commitment to the sale. This money, if accepted within the offer, turns into a solid down payment on the property if the sale moves forward. It essentially shows you are serious about buying the home.

Your Desired Dates

Your offer includes specific dates for moving in and closing day. It may even incorporate an expiration date, preventing the seller from “sitting” on the buyer’s offer for too long. The move-in date often overlaps with closing day, but they can differ, depending on the buyer’s personal situation. Closing day, however, is the official day the property changes hands. The property is legally the buyer’s responsibility after this date.

Negotiations Are A Natural Final Deal Breaker

Ideally, you want your offer to immediately turn into a sales contract to transfer the property on your own terms. However, the seller almost always negotiates the first offer. They may want a higher offer price or a different closing date, based on their moving needs. Go over any counteroffers carefully with your real estate agent. You do not want to agree to a stipulation that you missed or did not understand.

Work with your real estate agent closely to find the best deal for both parties. Although it is not mandatory, you may feel comfortable hiring a lawyer to look over the legal paperwork. Legal vocabulary can be confusing, allowing the party that drafted the document to benefit the most from its wording. Keep yourself informed while making an offer to find a great deal on a perfect property.


About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
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