Realty Bargains Tutorials

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CHAPTER 10

Making an Offer

Once you decide on the house that you are interested in, its time to make an offer to the seller that will communicate your interest in that property. A purchase offer will need to be drawn, which is a written contract that states your proposal, including terms and conditions that you expect to be accepted by the seller.

What the Offer Contains

If the seller accepts all the conditions stated on the purchase offer, it will be constituted as a purchase agreement. So make sure the initial offer you make lays down all the requisite terms and conditions.

Contingencies

In the offer made, if you specify any statement which says, “this offer is contingent upon (or subject to) a certain event," it means that this purchase will occur only if that specified event occurs.

Negotiating a Deal

You stand a fair chance of winning the negotiation process if,

  • You are an all-cash buyer
  • You are already pre-approved for a mortgage
  • You don't have a present house that has to be sold before you can afford to buy.

Getting to know the reason why the seller wishes to sell his house can aid you in devising a proper negotiating strategy.

Earnest Money Deposit

This is a deposit made by the buyer to impress the seller that the buyer "earnestly" intends to purchase the property. This is a deposit that you give when making an offer on a house. An attorney usually holds this deposit. Once your offer is accepted and the sale deed is signed, this deposit becomes part of your down payment.

The Seller's Response to Your Offer

The seller is free to accept, reject or make a counter offer if they wish to modify any of the conditions specified in your proposal.

As a buyer, you can freely negotiate with the seller, and can make counter offers in writing. The document becomes a binding contract only when either of the party signs an unconditional acceptance of the other side's proposal.

Withdrawing an Offer

In some cases you may feel like stepping out of the deal, due to various reasons. In most of the situations you may be able to revoke your offer, provided you are unaware of the fact that the seller has accepted your offer. Before communicating your plan to withdraw the offer to the seller, make sure you consult a lawyer experienced in real estate issues.

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