Making an Offer
You went through all the steps...you are pre-approved; you know what you can afford and what type of property is the best fit for you.
When you find a home that you are interested in buying, your Agent will walk you through the process of drafting an offer to purchase. Since many Central Florida properties are in hot demand, you may not be the only interested party making an offer. In such a case your agent will advise you and draft an offer that is strong competition but also that protects your interests.
An offer can be drafted with or without conditions; an offer without conditions is known as a firm offer and one with conditions is known as a conditional offer. A conditional offer represents the party with the placement of certain conditions on the purchase. Some of these conditions could be "subject to financing approval", "subject to the buyer's house selling", "subject to an approved home inspection", among many others.
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, ending the negotiations.
There are many components of an offer that you should be aware of and understand. As your Agent I will answer your questions and explain the entire process to you so that you are comfortable with the steps involved.
Purchase Price: This is the amount that the buyer is offering to pay for the property. The price is usually dependent on market conditions and may differ from the seller's current asking price.
Terms: An offer includes certain "terms", which specify the total price offered and how the financing will be arranged. Many buyers and sellers are under the impression that price will close the deal, but often it is the terms and dates that make an agreeable contract.
Inclusions and Exclusions: These are specifications within the offer that detail the items to be included or excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures and decorative pieces, but other items can be included in the sale.
Deposit/Escrow: A deposit is provided from the buyer to the seller as a token of the buyer's assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. As your RE/MAX agent, I will assist you in proposing a certain and appropriate amount for the deposit. All monies are held in a trust account and are typically paid in the form of a bank draft.
Conditions: Subjects clauses or conditions are written to protect a party's interests upon selling or buying the property. Subject clauses often refer to documents, inspections and other items that must occur or be in provided and approved before the sale can close. A time period is usually set for this to occur and if all the clauses are successfully met, the transaction becomes a legally binding contract. In other words, the property is then officially SOLD.
Possession or Closing Date: This is usually the date that the legal ownership of the property transfers from the seller to the buyer and, unless otherwise noted, when the funds for the purchase are concluded. Many things can happen between the time an offer is subject free and closing, so keep in contact with your agent.
If you have any questions dealing to offers, please feel welcome to contact me:
See Heather on WFTV Channel 9 - Changes on the Home Front: First Time Buyers
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• Longwood, Florida
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