One of the most common misconceptions among home buyers occurs when it comes time to making an "offer" or
"bid" on a home. Many believe that even thought they have tendered an offer to the sellers, that their options
are still open. To some degree, this is correct. If the seller rejects the offer, counteroffers it, or simply does not
respond, options are still open. You, as a buyer, can accept the counteroffer, make another offer, or simply move on.
If, however, the seller accepts the offer (and you are notified of its acceptance) then a legally binding contract has
most likely been struck. In the majority of cases and localities, there is not even the need for additional paperwork-the
signed offer becomes the contract. Your options now are more of the, "do we want to paint the master bedroom before or
after we move in?" Once the offer has been accepted, the "lets think it over just a little bit more," phase
has passed. This is why it is crucially important to make sure that all of your bases are touched and all of your
intentions made clear in the offer-it can become a binding contract in the blink of an eye and a stroke of the seller's
pen.
Some of the items that need to be addressed in an offer are:
- The proposed selling price (your offer)
- Any concessions you desire the seller make.
- Any financing contingencies
- Any home inspections contingencies
- A clear definition of precisely what is to be included in the sale.
- Amount of earnest money (your deposit) that is being tendered with the offer.
THE SALES CONTRACT: WHAT IT INCLUDES
- What: A legal description of the property as well as the street address.
- How much: The selling price.
- Mortgage contingency: Subject to obtaining a mortgage and the specifics of the mortgage-amount, rate and term.
Application to be made in X number of days.
- Deposit: How much money accompanies the contract and who will hold it.
- Closing: When and where.
- Inclusions and exclusions: What is and is not included in the sale of the property.
- Home inspection: Contingency for and to be done in X number of days.
- Well and septic: If applicable, tested and pass.
- Termite and pest inspection: Who will pay and if there is infestation or damage, who will repair.
- Possession date: When the buyers take possession of the house-before, at, or after closing.
SEVEN VALLEY'S REALTY
(417) 846-0913
