What is included in an offer?
When you decide to made an offer on a home, there is a lot of information that is included on the form. Home buyers need to know what they are getting themselves into to protect their interest. Items on the offer to purchase include:
-Purchase Price: This is a self explanatory item. It is how much that you would like to pay for the home.
-Including the following items: This references to any fixtures that you would like to come with the house, such as a stove, dishwasher, window treatments, washer, dryer, and anything else that you want within reason.
-Earnest Deposit:This is a check, for typically 1% of the purchase price. It is part of your down payment, and is only deposited when you & the seller come to terms. Once we get through the building inspection & contracts are signed with the attorneys, this money is them transferred over to the sellers attorney for the closing. You should be able to get the money back if you can not get financing.
-Inspections: Building Inspections are typically done within 7-10 days of the seller accepting your offer and them signing the revised offer with the new prices, dates and terms. There are several inspections that you can get (building,pest,radon,water,lead, septic,well,etc), but it depends on the property. You are free to check any of the boxes that indicating which inspections that you want, but you don’t need to have them if you change your mind. I am happy to provide a list of inspectors.
-Money at Contract & Contract Date: Once we get through the building inspection & workout any issues, contracts get going with the attorneys. For the date the offer is accepted, it takes about 3 weeks to get contracts. You can give the remaining portion of your down payment here, so put some here and give the rest at closing, depending on how you want to structure your deal.
-Mortgage: You can make your offer contingent or not contingent on getting a mortgage. If you do not make your offer contingent of getting a mortgage, but you go through the process of trying to get one & you can’t, you would still need to purchase the property or risk losing your earnest money or funds at contract. If you do make the mortgage dependent on that, and if you can not get financing, you can be released from the purchase agreement.
-Other terms/condition: There is a space on the form to list other terms/conditions. Items that have been written in include ‘Home to be sold as is'’, ‘Purchase on contingent on closing of buyer’s current at X’, ‘Property to appraise at or greater than purchase buyer’, ‘buyer’s review of condo documents’,’$ credit toward escrow, prepaid and closing costs’.
-Closing Date: Closing typically takes place between 45-60 days after an offer is accepted. Sometimes it can be done faster if you are paying cash and the home is vacant. Sometimes it does take longer depending on any delays in financing or inspection issues. You can also give the remaining balance of your down payment at closing.