Ron Matin
If you’ve located the perfect home and have made up your mind to buy it, you’re probably considering putting in an offer. Placing an offer on a home involves more steps than simply calling the seller and saying you want to buy it. In truth, an offer is a legally binding document that typically includes numerous places for you, the buyer, to sign and agree to various terms and conditions. So, what steps should you take to submit a bid on a house?
General terms and conditions before making a real estate offer
Before making a formal offer to buy the home you want to buy keep the following information in mind.
- Be sure you know what you’re getting into before putting in an offer to buy a house.
- Financing, home inspections, closing costs, and the closing date are just a few examples of crucial contingencies to mention in a purchase agreement.
- Most legal agreements include stipulations for unforeseen circumstances, and you must be aware of them all.
- You may be able to cancel the offer and get your deposit back if a condition is not completed within the allotted time frame.
The components of a good real estate offer
If this is your first time going through the process, you may have questions about what constitutes a good offer on a house. While each case is different, there are some commonalities to look for as you negotiate the process and put up an offer.
Price of sale
The sale price is obviously how much you’re willing to spend on the home. Consider how much comparable properties have previously sold for, the general condition of the property, and if current market conditions favor buyers or sellers when deciding how much to offer.
Deposit of earnest money
The earnest money deposit will be collected early in the transaction and held in escrow to be applied to your down payment at settlement. Consider this your “pain money.” It is the amount of money you could lose if you decide to breach the contract and leave the property. Sellers typically prefer higher quantities because it indicates that you are more invested in seeing the deal through to completion.
Contingencies
A home offer will almost certainly include certain stipulations. In a nutshell, a contingency is something that allows the offer to be withdrawn. Some typical restrictions allow the buyer’s offer to be canceled if the buyer is not authorized for a loan, if the house requires too many renovations, or if the buyer’s current property does not sell.
Closing expenses
When a buyer makes an offer on a home, one of the factors that will most likely be considered is the closing expenses. There are fees and additional costs in addition to the purchase price of the home. Closing costs may include home inspection fees, financing fees, and so forth. Sometimes the home seller pays for full closing costs, while other times they are split 50-50. The split of closing costs is one of the components of an acceptable offer.
These are the main components of a good housing offer. While your situation may differ, these items are often included in almost every property purchase. Adding them is intended to safeguard both the buyer and the vendor.
Making a real estate offer in Vancouver
Your real estate agent will likely prepare a copy of the purchase and selling agreement reflecting only the final terms once talks are complete and everything has been agreed upon. After this is done, you and your real estate attorney should evaluate the offer to make sure all of the terms are specified to your satisfaction. If you have any questions regarding the real estate process whether you are buying a home or selling one, you contact our professional realtors at Matin Homes real estate located in Vancouver.