How to write up the Perfect Real Estate Offer

How to write a perfect Purchase Offer

Top 10 Tips for Writing Purchase Offers

So you’re ready to buy a house? First off congratulations!

The first step in buying property is writing up an offer. Many people do not realize how important the offer contract can be when buying real estate. If you have a poorly constructed offer it can cost you getting the property you want, while a well written offer can get you the property you want at the price you want!
Meanwhile use the following tips as a guide to creating a great offer:

1. Get the right Contract

This might seem basic, but there are a lot of purchase contracts out there. Each state has its own rules and regulations. Realtor associations publish purchase contracts. If you are looking to buy in California, please contact me and I will help you with the correct forms.
Some example purchase contracts would be:
  • · New Construction Residential Purchase Agreement
  • Notice of Default Purchase Agreement
  • Residential Purchase Agreement
  • Residential Income Property Purchase Agreement
  • And many more
2. Determine what price you want to offer

Evaluate market conditions and come up with what you think is a fair offer price. TIP: Initially offer a bit less than you expect to pay, this will give you some room to negotiate and possibly get an even better deal. Be prepared to move quickly, in today’s market the good properties are being sold very quickly.

3. Put down a deposit
You will need to make a “good faith” deposit. The most common deposits can be cash, personal check, or cashier's check. On average the deposit amount should be at least 1% of the sales price. This money(a copy of the check) will be submitted with your offer.

4) List your Financing Terms

Disclose the type of financing you hope to obtain: The amount of money down and the type of loan (conventional, FHA, VA, contract of sale, assumption or other).
Please remember that your deposit, when added to your down payment and financing should equal the total consideration paid.

6. Include Contingencies

Contingencies are: Conditions --or "safety valves" written into Real Estate offers and contracts that protect they buyer from buying a house that is unsatisfactory--either structurally or financially
Contracts carry provisions for contingencies as:
  • Appraisal (California gives 17 days to complete all inspections)
  • Loan Funding
  • Physical/Home Inspections.
7. When do you take possession of the property?
  • Spell out the possession date. Is it on closing? A day after closing?
  • If possession will be prior to closing, enter into a rental agreement to protect all parties.
  • If possession is more than two or three days after closing, execute a rental agreement to protect the buyer.
8. Negotiate Who Pays the Fees

Even though most contracts call for fees to be negotiable, some fees, depending on your state, are customarily paid by one party. You can spell out who pays fees for title, escrow, and county or city transfer taxes. In most cases the Seller will pay the fees.

9. Request Special Reports

If you are concerned with anything with the property ask for a Special Report Upfront. Example Reports: Termite Report, Lead based paint report, and Mold inspections.

10. Clearly State Expiration of Offer

Clarify when the offer will expire. You will want to give the seller enough time to come to a decision, but not allow them to take their sweet time.

For any help or questions on creating a great offer contact:

Oliver Graf
Real Estate Expert

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