Now that you’ve found a home you love, it’s time to make your offer. But buying a house is not just about verbal commitments and handshake deals. This is why every little thing that should be included in the terms of the sale should be officially written and agreed to specifically. You can’t just shortcut your way through this process.
The Process of Making an Offer
Considering that you have done your research and know everything there is to know about the local market, and you want to make your offer right now. Here’s what to expect:
- You write your written offer and give it to the seller.
- The seller could either accept your offer, declines it, or counters it.
- If the seller accepts your offer, you close on the deal.
- If the seller counters your offer, you could either revise your offer or accept the counter offer.
- If the seller declines your offer, you could make another offer or start looking for another property to buy.
The Offer Letter
Your offer letter is legally binding, and various federal, state, and even local laws guide the offer process, so you need to make certain that your letter is in accordance with these laws, advises an experienced real estate broker from a top real estate company in Cockeysville, MD. It’s also best to work with your agent and if possible a lawyer just to be sure. In general, your offer must include the following elements:
- The legal address as well as legal description of the property;
- Specific details about the terms of sale and price;
- Specific terms and amount of your earnest money deposit;
- Particular details about your part in the closing fees, related fees, and how certain expenses and taxes would be allocated between you and the seller during closing;
- A mandate stating that the seller would give you a clear property title;
- The exact time and date of your offer’s expiration;
- The estimated closing date of your loan;
- Any contingencies riding on the deal; and
- Other disclosures or provisions required by the state.
If The Seller Accepts…
Keep in mind that a mere phone call, verbal agreement, or handshake does not make your deal official. The deal would only be official when you and the seller both sign your offer. Once you get the necessary signatures, all that’s left is to close the deal and move into your new abode.