Things To Include In A Real Estate Purchase Offer

Your home purchase offer is one of the things that determine whether a seller accepts your offer; this is why the details of the offer matters. Here are some of the things to include in your purchase offer:

Your Contingencies

The contingencies are the conditions that need to be in place before you can close the purchase deal. For example, you can say that you are making the purchase offer contingent on:

  • You securing a mortgage loan
  • The property yielding a favorable inspection report
  • The seller making the necessary repairs
  • You selling your current

List all contingencies in your purchase offer; don't wait to spring them on the seller later on.

The Closing Costs You Will Be Paying

The closing costs may be paid by the seller or buyer or both the seller and buyer; it depends on the customs of the area as well as the agreements you made during the negotiations. Closing costs are a common source of disagreements between home buyers and sellers so mention whom you expect to shoulder the closing costs to clear up any misconceptions.

The Expected Possession Date

This is another common cause of disputes because there is no universal law on the exact day you can take possession of a house you have purchased. You don't want to land in a situation where you are ready and want to move into your new house but the seller hasn't cleared their items out. Therefore, if you want to move into the house two days after closing, that is what you should put into your purchase offer.

The Good Faith Deposit

Making a good faith deposit shows to the buyer that you mean business. You should state how much you are putting up as the good faith deposit, how it will be paid (is it cash or personal check) and who will be holding the money (hint: this can't be the seller). Educate yourself on the terms and conditions under which you may lose your deposit before committing to the purchase.

When Your Offer Expires

Lastly, you need to specify the expiration date of your purchase offer. Don't make an open-ended offer that will leave you guessing whether the seller has accepted or dismissed your offer. You should have a definite date on which the offer expires if the seller has not made their move.

These are just a few examples of what you should include in your purchase offer. Your real estate agent will provide you with an exhaustive list of everything you should include so that your offer is complete. You can also talk with them about more questions you have regarding homes for sale.