Step 4: Making the offer

handshakeNow that you’ve received a pre-approval letter from the bank and you’ve picked out the house you want, you are now ready for the next step,… making the offer.

Oral promises aren’t quite going to be enough when it comes to something as intricate and expensive as a home purchase. Besides that, they are not legally enforceable when it comes to real estate. Therefore you’re going to need to write up a contract that actually is enforceable. This is known as a “Purchase Agreement.”

What exactly should the Purchase Agreement contain?

The Purchase Agreement, if accepted, will become an binding sales contract. It is therefore important that it contains clear instructions on all the items and agencies involved in the purchase. These items generally include:

  • Address of the property to be acquired.
  • Purchase price.
  • Terms of the deal. (Is it an all cash purchase, or is it subject to obtaining a loan for a given amount or selling your current house before purchasing the new one?)
  • Seller’s promise to provide clear title.
  • Target date for the close of escrow and date property will be turned over.
  • Amount of earnest money deposit accompanying the offer, and how it’s to be returned to you if the offer is rejected or kept as liquidated damages if you back out for no good reason.
  • Instructions as to who will pay for title insurance, termite inspections, home warranty and escrow fees, and what companies are to be used.
  • A disclosure stating which agents and brokers are representing the buyer and the seller.
  • Type of deed to be given.
  • A time limit after which the offer will expire.

Next month we’ll review tips on just how to make your offer a strong one.

If you’re ready to start the process of purchasing your first or next home, call me today to set up an appointment. 310-722-5959.

Sincerely,

Lawrence Chaves,

DRE# 01893036

Click “follow” and “like” at the top of the page to subscribe to L.A. Real Estate 101, and stay on top of the L.A., and National, real estate markets.

Advertisements

About Lawrence Chaves

Lawrence Chaves Keller Williams Beach Cities BRE# 01893036 Member of the South Bay Association of Realtors, California Association of Realtors, and National Association of Realtors. Specializing in residential and income properties in the South Bay and Beach Cities of Los Angeles County. 1st time buyers & new to the South Bay are welcome. Taking appointments now. 1601 Pacific Coast Hwy Ste. 265 Hermosa Beach CA 90254 Phone: 310.722.5959 Email: LJChaves@gmail.com Website: http://lawrencechaves.kwrealty.com/
This entry was posted in Uncategorized and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s