Overview
For some home buyers, this can be a stressful experience. After all, you
and the seller may not be able to come to an agreement and you may not
get your dream home. There are eight basic elements to an offer and there
are various offer strategies that you may want to use during your negotiations.
Once you've found your home, you'll have to make a formal, written offer to
purchase. This is a legally binding contract outlining what you will provide
(a combination of price and terms) in exchange for the home. Your RE/MAX
associate will probably use a pre-printed form covering all of the legalities
and then modify it to cover what you want to offer.
Remember, everything is negotiable. You should ask for all that you want, but
keep in mind what you're willing to give up. Your RE/MAX associate will put it
all in writing. Of course, the more contingencies in your offer, the less
attractive it will be to the seller. But in a buyers' market, that's OK.
The seller may counter your contingency with an escape clause. For example, the
seller may wish to continue showing the house and if they receive another offer,
you'll have the option of backing out or removing your contingency.
The Offer Can be Firm or Conditional
A firm offer means that you're prepared to purchase the home without any conditions.
If the offer is accepted, the home is yours. Although a firm offer to purchase is
usually preferable to the seller, if you're unable to close, you'll lose your deposit
and may be sued. Take time to confirm your financing and to think twice about the
investment.
A conditional offer to purchase means that you have placed one or more conditions on
the purchase, such as a home inspection, financing or sale of your existing home. The
home is not sold until all the conditions have been met.
Acceptance of the Offer
Your offer to purchase will be presented as soon as possible. After the seller has
reviewed the offer, it may be accepted as is, rejected, or returned with a counter-offer.
The counter-offer may be in reference to the price, the closing date or any number of other
variables. The offers can go back and forth until both parties have agreed or one ends the
negotiations.
It is best to know your absolute upper limit before you begin negotiations, so that
in the heat of the moment you don't end up with a home you really can't afford.
