What goes into a written offer

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What goes into a written offer

June 17, 2011
 
Once a home buyer has decided they've found the property they want to buy, it's time to make an official written offer. The buyer's real estate agent will arrange their offer and handle most of the work, but they generally consult with the home buyer to suggest certain terms, limits and approaches to the offer. According to Freddie Mac, there are 
a number of factors that go into a written offer, and it helps for home buyers to be aware of these items before putting something forward.
 
Purchase price
 
Freddie Mac reports that the purchase price is the price a home buyer offers to buy the home for, though home buyers are advised to consider the fact that they may be counter-offered by the home seller. A real estate agent can advise on the best primary offer to make when buying a home and suggest counter-offers once negotiations get underway.
 
Concessions
 
According to Freddie Mac, concessions are the requests a home buyer might make of a home seller. Sometimes, a home buyer might ask the other party to pay for closing costs or other expenses, reports Freddie Mac.
 
Impact of a home inspection
 
If a property's home inspection came back spotty, Freddie Mac reports it's not uncommon for a real estate agent to include certain contingencies in an offer. For instance, a home buyer may ask for the home seller to pay for certain repairs that were revealed in an inspection, or they may ask for a lower purchase price based off the cost of the repairs the home buyer will make after they move in.
 
Conveyances
 
Conveyances are the other items a home buyer will be getting along with the home. For instance, a home seller might choose to leave their washer and dryer behind for the new home buyer. It's wise to factor which items will be included in the sale in the written offer, according to Freddie Mac.
 
Earnest payment
 
Earnest payment is a deposit the home buyer pays to show they are serious about the purchase. This money is held in a third-party account and applied to closing costs after the sale is agreed upon, Freddie Mac reports.
 
Acceptance
 
Acceptance period is the period of time in which the home seller must respond to the home buyer's offer before it is revoked. If the home seller accepts the offer outside of this time limit, the offer may no longer be legally binding, according to Freddie Mac.