Elements of a Purchase Offer (Part 1)

Whether you are buying or selling property, the purchase offer is the most complex part of the home buying/selling process. Both buyer and seller are happy to have gotten to this part of the transaction as the end seems to be in sight. In reality though ... this is just the beginning and where your experienced Realtor can help you out the most.

The purchase offer is a very complex and lengthy form. Many people focus on just the purchase price ... but there is so much more than just that. There are many different elements of this contract that spell out to all parties exactly what needs to happen and when before the property can change ownership.

The main elements that I'll be discussing in this and the next few blogs are: Terms, Inclusions/Exclusions, Deposits, Contingencies, Possession and Closing Dates, and finally Purchase Price.

Terms:

An offer includes certain "terms", which specify the total price offered and how the financing will be arranged, will there be sellers concessions, will you arrange your own with a financial institution or mortgage broker or if you wish to take over the seller’s mortgage (assumability).

Inclusions/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. Most often it will be spelled out in a listing if there is an item that the seller wishes to have left out of the sale. Items such as chandeliers that have sentimental value which the seller would like to keep are best handled if they are removed and replaced prior to the listing of the property. Buyers that would like to have an item that isn't included are free to write it in and "see what happens."

Deposits:

A deposit is usually given 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. Your agent can assist you in proposing a certain and appropriate amount for the deposit. The deposit is then held by the listing agents broker in their escrow account.

I'll talk about the other parts of the purchase offer on my next post. If you have any questions relating to this or any other real estate need ... please don't hesitate to contact me:

Michael Walker -- Mike@MikeWalkerHomes.com

Century 21 Premier Properties

585.645.1258.