How to make an Offer on a House
Once you have decided on the home that you want to buy, the next step will be making an offer for the property. Your attorney or real estate agent will draft a solid offer for you. Your purchase contract will bind you to buy the house and as such, you have to be careful on how you bargain for the price. Like any other transaction, you want to pay the lowest amount possible for the house. This process can be smooth for Palisades Park NJ cash house buyers who have planned well in advance.
So, what exactly is the purchase offer for the house? Well, this is what is known as the purchase agreement, deposit receipt, or even earnest money agreement. This purchase offer should be drawn carefully as it will become the final sale blueprint if the offer is accepted by the seller.
The offer should include sufficient information such as the legal description of the property or the address, the sale price, the terms of sale, provision on the various payments such as title insurance, survey and so on. The offer contains such important details such as the time limit contingencies.
Contingencies, also known as “subject to” clauses are conditions in the offer that mean you will purchase the homes for sale in Bergen County nj on certain conditions being fulfilled. Such contingencies can be:
- The buyer promises to buy the home if they obtain financing from lending institutions. With this kind of contingency, the buyer is only bound to buy the house if they get the loan.
- A home inspector gives a satisfactory report-this implies that the buyer is not bound to buy the property if a home inspector submits a satisfactory report.
Your bargaining position for a house in Cliffside Park in Bergen County will determine your progress in making a successful offer for the home. A seller is more likely to prefer your offer if you can guarantee them the following:
- That you will pay fully in cash.
- That your mortgage is already approved and that you are not relying on your previous house to be sold before you buy the house in question.
- You are able to close the deal and posses the house at a time convenient for the seller.
The above are circumstances that will be favorable to you. However, if it is a “hot” market, you may have to offer the list price for the house or even more so that you can beat out offers from other potential buyers.
The earnest money is the money that you give the seller as deposit when you are making an offer for a house. This will become part of your down payment if your offer goes through. Usually, the sellers of homes for sale Hackensack NJ will want to have some money paid as a form of good faith when one is making a written offer for a house.
If the seller signs an acceptance after receiving your offer, then you will have a binding contract and this will become a firm contract once it is notified to you.