Always make your offers in writing because oral contracts are not binding in real estate sales.
Be sure you can afford the price before you make the offer.
If you have been pre-approved, include a copy of that letter with your offer.
Make sure you have attached any contingencies you have, and always insist on a professional inspection contingency clause.
This protects you in case the seller did not disclose any serious defects about the house.
Include a deposit and the terms for returning the deposit if the sale is not final.
If the sale is finalized, the deposit will be applied to the down payment.
Contracts should always include the address of the property, the terms of sale, the purchase and deposit amount, method of prorating real estate taxes, water bills, and other expenses that the owner is liable for.
You should also include the time period that the offer is valid, what type of deed will be given, who will pay title insurance, termite inspection, etc., and any contingencies.
Negotiation is easier for a buyer who can offer a seller a specific convenience, such as an all cash sale, no waiting for the buyer to sell his or her own property, or a pre-approved buyer, etc.
Contracts are only final when one party signs an unconditional acceptance of the other party’s offer.
If you want to withdraw your offer, consult your lawyer first to be sure you will not be sued for damages to the seller.
When you decide what price to offer the seller, don’t forget to consider all of your costs:
Down payment
Loan application fee
Loan origination fee
Buyer’s title insurance
First year of prepaid homeowner’s insurance
First year of prepaid mortgage insurance
An attorney
Interest from the date of closing until the end of the month
Packing materials
Movers’ fees
Utility deposits and hook up fees
Escrow for real estate taxes, homeowner’s insurance, and PMI
