Before the offer to purchase is created, it is very important that you have been at least pre-qualified or better yet pre-approved by a lender.
This is one of the best negotiating tools a buyer can have. It shows the seller that you are financially able to purchase the home. After you have found the right home, it is time to prepare the offer.
When you are buying a home, there are many problems that the seller is obligated to disclose. For example, in most states, it is illegal to withhold information about major physical defects on the property, but, these disclosures don't always paint the entire picture of the home. Here are six questions you may want to ask that can offer additional insight about the prospective home before you make a final decision.
1) Why is the seller selling the house? This question may help you evaluate the "real value" of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.
2) How much did the seller pay for the home? This question can, in some instances, help the buyer negotiate a better deal-maybe even get the seller to carry part of the loan. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.
3) What does the seller like most and least about the property? By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a "happening community," the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.
4) Has the seller had any problems with the home in the past? It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should also check that these items were repaired properly.
5) Are there any nuisances or problem neighbors? Use this answer to find out about any noisy neighbors, barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you insight on why the seller is really moving.
6) How are the public schools in the area? Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer's perception can give you some insight about the quality of the area's schools.
Knowing all you can about a prospective home, not only helps you decide if it's the home of your dreams, but what offer to make as well. Your real estate professional can help you get your key questions answered and give you advice on how to evaluate your findings.
In real estate, all offers must be in writing and are a traditional approach in contract law used to determine whether an agreement exists between two parties. An offer is an indication by the Buyer(s) to the Seller(s) of the Buyer(s) willingness to enter into a contract under certain terms.
An offer will contains all the terms of the agreement and will serve as the outline for the final sale and closing. The offer includes the address and the legal description of the property, sales price, closing date, concessions, and many other terms.
A contract is an agreement; A contract is said to come into existence when acceptance of an offer and the terms in it have been communicated to the Buyer and the Seller and both have signed in agreement. The contract is legally binding and should not be signed unless the buyer and seller agree to all the terms.
Once an offer has been submitted by a buyer, it is presented to seller. If the seller accepts the offer, they will sign and it will then be a contract. If the seller does not agree with the offer and is not accepted, the seller may reject or present a counter-offer. A counter-offer may include changes in the price or some of the terms and conditions. Counter offers will state what the seller has accepted, rejected or changed about the offer.
Offers usually include the following:
As REALTORS®, we have standard purchase agreements and will help you put together a written, legally binding offer that reflects the price as well as terms and conditions that are right for you.