The Basics of Making an Offer
Just like marriage, home buying is one part transaction, one part love, and begins with a proposal. When you are ready to purchase a home, making an offer is very essential. Oral promises are not enforceable in the real estate sales legally. Realtors most commonly have a range of standard forms kept updated with the changing laws. In many states, the sellers need to comply with particular disclosure, and a realtor will make sure that they do, as well as answer any of your questions during the sale. On the other hand, if you are not working with Susan Kazarian, a realtor in California, you need to remember that your buying offer or contract needs to conform to local and state laws. The state laws may vary, and specific provisions may be necessary in your area.
Other than addressing legal requirements, making an offer has to specify the price all other conditions and terms of the purchase. For instance, if the sellers said that they would help with about 2 thousand toward your closing costs, include that in the proposal that is written and in the official contract; or you will not have ground for collecting it in the near future. After the offer is signed and drawn up, it will most commonly be presented to the seller by your realtor, by the seller’s realtor, or usually by both of the two. In several areas, the lawyers of the parties usually draw up sales contracts.
What to include when making an offer
If accepted as it stands, your purchase offer will become a binding sales contract, which is also known as a buying agreement, a deposit receipt, or an earnest money agreement. It is very essential, thus, the offer contain each element necessary in serving as a blueprint for the official sale. These buying offers need to include the following:
- Sale price
- Target date for the actual sale
- Address, and sometimes, a legal description of the property
- The promise of the seller to provide clear ownership
- Type of deed that will be granted
- Provisions about who is going to pay for the title insurance, termite inspections, survey, and the like
- Amount of the earnest money associated with the offer, regardless if it is a cash, check, or a promissory note, along with how the earnest money will be returned to you if the offer has been rejected
- A provision that the buyer may make a last-minute inspection walk through the property before the closing
- Method by which rents, water bills, utilities, fuel, and real estate taxes are to be prorated between the seller and buyer
- A time limit and after which, the offer will expire
- Other requirements particular to California, which may include a chance for disclosure of certain environmental hazards, attorney review of the contract, or any other state-specific clauses
The sellers may feel that some of these costs are not their responsibility but many homebuyers, especially the beginners, are short of cash. Helping a buyer can be the best way of getting a home sold. Whether you are selling or buying, make sure that a realtor and/or a lawyer in Visalia evaluate all the terms in the offer and in the counteroffers.