Offer to Purchase Write Your Offer Negotiate An Offer Execute An Offer

7 OFFER TO PURCHASE

When you have found the right home, it is time to prepare and draft an offer to purchase. This offer protects and represents your interests while remaining legally binding on final acceptance. There are three major steps to an offer, and your REALTOR ® will explain the entire process so that you are comfortable with the steps involved.

STEP 1: THE PURCHASE CONTRACT When your agent writes the offer, it is important for the buyer to keep the dates and the deposit amounts in mind. Once you have an accepted offer, your first Earnest Money Deposit (EMD) is due. Your first EMD will bind the contract. The amount that is written in the offer is determined on several factors that your REALTOR ® will talk to you about.

This is a good time to find a real estate attorney so that once you get to the Purchase and Sale Agreement step, you have an attorney ready and available to review the agreement. Your REALTOR ® can also provide you with a referral if needed.

STEP 2: NEGOTIATE THE OFFER - POINTS TO CONSIDER • The condition of the home • Length of time it’s been on the market • Buyer activity • Location • Urgency of the seller

The seller may accept your initial offer, reject your offer, or present a counter offer. The counter offer may differ from your original offer in respect to price, conditions, the closing date, or any other items. Offers can be countered back and forth between the parties until one of you accepts or rejects, concluding the negotiations.

STEP 3: EXECUTE THE OFFER After both parties agree to the terms and conditions of the contract, both parties sign the offer to make it an executed offer. Once executed, the first Earnest Money Deposit is due to the seller.

*Understanding Contractual Terminology – see our glossary of terms.

Typical Conditions to Include

FINANCIAL TERMS

• Mortgage approval • Seller pays a fixed dollar fee towards closing costs (optional) • The property must appraise at the purchase price

HOME INSPECTION

• Full access and inspection by a certified inspector • Electrical, water, heating, roofing, and any infestations should all be investigated thoroughly • Costs paid by seller for any repairs over a specific amount • Certain repairs to be completed and approved before purchase

CLOSING DATE

• Typically dated to give you and the seller the time required to complete the purchase transaction • Related to the sale of your present property or the remaining term of your rental lease • Subject to the seller’s flexibility to move