Offer to Purchase
Once you find the home you want to buy, the next step is to present an offer – which is not as easy as it sounds. Your offer is the first step toward negotiating a purchase contract with the seller. The offer is much more involved than simply coming up with a price and saying, "This is what I’ll pay." Because of the large dollar amounts involved, especially in today’s litigious society, both you and the seller want to build in protections and contingencies to protect your investment and limit your risk.
In an offer to purchase real estate, you include not only the price you are willing to pay, but other details of the purchase as well. This includes how you intend to finance the home, your down payment, who pays what closing costs, what inspections are performed, timetables, whether personal property is included in the purchase, terms of cancellation, any repairs you want performed, which professional services will be used, when you take physical possession of the property, and how to settle disputes should they occur.
Buying a home is a major event for both the buyer and seller. It will affect your finances more than any other previous purchase or investment. The seller makes plans based on your offer that affect his finances, too. However, it is more important than just money. You are making decisions that affect how you live for the next several years, if not the rest of your life. The seller is going to review your offer carefully, because it also affects how he or she may live the rest of their life as well.
Buyer's Edge Realty will offer advice and counsel on price and terms when presenting an offer. In Westchester County, NY, you should be aware that offers are typically made verbally to the listing broker, with seller counteroffers also made verbally. Binders are not requested or accepted. When an offer is accepted by the seller, inspections are typically done at that time. However, be aware that the property can continue to be shown to other buyers, and a better offer can be entertained and accepted, with yours now being rejected. When inspections are finished, and any renegotiations completed, the seller will have their attorney draw up the sales contract and send it to your attorney, who will review it and make modifications to protect your interests. The buyer will sign the contract and return it with a deposit (typically 10% of the purchase price) to the seller's attorney who will deposit the check in an escrow account. The seller will sign the contract, which will be sent back to your attorney. At that time this is considered a binding contract subject to any contingencies (financing, title, etc.).
Next Topic - Purchase Offer Contingencies
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