Once you find the house of your dreams, you have to make an offer on that house and see if it is accepted. This is much more complex than simply slapping a price tag on the property. It is recommended that you use a real estate agent to help you with this process. However, you can manage it on your own if you know what you are doing.
There are several elements to an offer on a property. Of course, the most important part is the purchase price, as well as how much you are putting down on the home. However, there is much more to it than that.
The offer must also include certain contingencies and expectations on your part. These are to protect you and make sure that you get what you really want out of the deal. One contingency you definitely want to include is that the sale is contingent on you getting a desirable mortgage for the home. This way if for some reason the mortgage is turned down or comes at too high an interest rate, you won’t have to follow through on the purchase.
Another contingency you should include in your offer is that the purchase is contingent on the home inspection being satisfactory. Many times the home inspection comes after the offer has been accepted. This is an important thing to include, because if you miss this contingency you could be stuck buying a money pit. You will also want to make sure that you include a contingency that the title must be clear for the sale to be made.
You should also include a list of items that are included in the purchase. This may include major appliances, landscaping elements, lighting fixtures, ceiling fans, and other items. You should include anything that isn’t nailed down in this list, as well as some things that are. If it’s not on the list, the seller can remove it before they release the property.
There are some other terms you may also want to include in your offer. For example, you can exact in your offer that the seller is going to pay all closing costs. You can also include in your offer that certain repairs or improvements must be made prior to the sale or that a certain amount be deducted from the offer price for those repairs. A real estate agent or attorney may also have other suggestions about what you should include in your offer.
Remember that once accepted, your offer constitutes a binding contract. You cannot back out of the deal or change it once your offer is accepted. So you have to be careful that you don’t leave anything out of the deal.