How to Prepare a Home Offer
Buying a home is one of the most important financial decisions anyone can make. Using a real estate agent eases some of the anxiety by offering experience and knowledge about the process. Still, some homebuyers decide to do it on their own and prepare a home offer without help. If this is you, follow these steps to write an effective home offer that protects your rights.
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Instructions
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Start with the basics. This purchase offer, once accepted, becomes a legally binding contract, so begin preparation with the property's address, a description of the property and your initial offer. This number can be lower than the top amount you're willing to pay so that it gives you room to negotiate with the seller.
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Outline the terms of the offer. This step is where you tell the seller exactly how you'll pay for the home. You need to detail your financing; for example, mention whether you're paying cash or are obtaining a mortgage and the amount you're prepared to put down as a deposit.
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Include terms for inspections. Before making the sale final, you should have a certified home inspector examine the property for structural and roof problems, mechanical failures, water quality and pest infestations to start. You can request any type of inspection you deem necessary, and indicate in the offer who has to pay for each inspection.
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Decide on a closing date. The date of ownership can be a sticking point between you and the seller, depending on how soon you want to occupy the home. The closing date depends partly on how long the inspections and financing will take, but once that's determined, it's up to you and the seller to agree on a date that's mutually satisfactory.
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Insist on a walk-through when preparing your home offer. One of the worst things that can happen is that you go through the entire buying process only to close on the house, hire the moving van, turn the key and find a complete mess inside. A walk-through on the morning of your closing will ensure that you take ownership of the home in the same state it was in when you decided to buy it.
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Write down any items you'd like included in the sale. You can ask for anything, such as all appliances, the window treatments, lighting or ceiling fans. It doesn't mean that the seller will agree, but if you don't address them when preparing your offer, the sellers are free to take everything when they leave.
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Add contingencies to the offer. When you're writing the offer, think of how long you're willing to wait for a reply or under what conditions you'd rescind the offer. Put these in writing so that the seller knows up front when you expect an answer and what would make him lose the sale.
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Tips & Warnings
Sellers are more apt to accept an offer without a lot of terms and conditions, so be sure you really want what you ask for before submitting your offer.
Run a title search before closing on the property.
When you prepare the home offer, include terms that would ensure the return of your deposit if you change your mind.
When negotiating the terms of the offer with the seller, don't forget to address any prorated costs and fees such as gas, oil, electric, water or services like a security system.
Insist that the seller pay all fees associated with improvements necessary to obtain the certificate of occupancy.
