Making An Offer To Purchase Real Estate

While searching for your dream home, everyone is a dreamer! We need to be romantic, listen to our emotions, and to let ourselves fall in love. Yes, I am talking about purchasing a home. Now your Realtor wants you to become a businessperson. Everyone needs to approach making an offer to purchase a home with a cool head and a realistic perspective on the marketplace. There are three components of an offer: price, terms and contingencies. 

PRICE!  The right price fairly reflects the market value of the home you are interested in calling “home.” Ask your agent for a competitive market analysis or comparables of other properties sold in the area. Perfect comparables are very hard to find. Remember, smart sellers go through a similar process to price their homes fairly. In my 32 years of working with buyers, I have seen people get caught up in making a low offer and lose the house because they insulted the sellers. Especially in today’s market place. 

TERMS!  Buyers and sellers have to agree on many details of a purchase agreement. Terms give buyers and sellers additional flexibility in crafting a win-win transaction for both parties. Six basic terms in a real estate contract are schedule, conveyances, commission, closing costs, home warranty and earnest money. 

CONTINGENCIES!  Buyers and sellers need to consider all conditions or contingencies included in an offer to purchase. What would happen if the seller goes on vacation, a pipe springs a leak, and the property is damaged?  As a buyer, would you still want to buy the property at the price and terms in your initial contract?  Probably not!  This is why contracts include contingency or condition clauses. There are five standard contingency clauses in a real estate contract: financing, inspections clear title, condition at delivery and community restrictions.

ACCEPTANCE!  The process of purchasing a property now moves forward to the next phase of the business. You, the buyer, will select a third party to perform the inspections included in the offer to purchase and turn in your earnest money check to your Realtor or a Title/Escrow Company……and the process continues!

Leading the Way Home,

Carol Murphy

Avon Lake Real Estate