Making an Offer to Purchase

 Once you find a property you like enough to buy, as your buyer agent, I will compile all the information I can on that property to assist you in determining the terms of your offer. This includes tax records, comparable sales in the neighborhood, improvements made and needed to the property, seller motivation, the general and local economic conditions, and anything else that may influence your offer.

 It is common for buyers to have a professional home inspection as a contingency to the offer.  Since July 1993, sellers have been required to either:

1. Disclose property condition by answering 19 questions on a disclosure form, or,
2. Disclaim and sell the property “as is”, without representations or warranties except as otherwise provided in the sales contract.

Regardless of whether a seller “disclaims” or “discloses”, the purchaser should exercise whatever due diligence he or she deems necessary regarding the condition of the home and surrounding areas.

There are also radon tests and other environmental testing that you may want to consider depending on the property.  Unless this is to be a cash deal, the offer is usually contingent on the purchaser obtaining the financing specified in the contract.

 When you have decided on the house you want to pursue, we write a sales contract with the terms of your offer. The offer includes sales price, down payment, loan amount and type, points paid by the seller and buyer on the new financing, chattels conveying, settlement agent, settlement date, seller contribution for buyer closing costs and all other conditions you propose to the seller.  The sales contract is usually accompanied with an earnest money deposit. It should also include, at a minimum, a “prequalification letter” from a lender. A “preapproval letter” gives a purchaser even more leverage in a seller’s market where there may be multiple contract offers bidding on the same property.

 I present the offer to the seller and the listing agent.  There may be a series of counteroffers during the process until the contract is accepted.  Once both seller and buyer have agreed in writing to all the terms of the sales contract, we have a ratified contract, which is a legally binding agreement between the parties. The sales contract defines the rights and duties of all the parties. Remember that every word in the contract is important and carries obligations and responsibilities.

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