Create the Offer to Purchase|
Before the offer to purchase is created, it is very important that you have at least been pre-qualified or better yet pre-approved by a lender. This is one of the best negotiating tools a buyer can have. It shows the seller that you are financially able to purchase the home. The lender you choose to handle your loan should supply us with a pre-approval or pre-qualification letter so that can be presented along with your purchase offer.
After you have found the right home, it is time to prepare the offer. It is always best to present a written offer as there are many terms of the purchase to consider, not just price. In Texas, the offer to purchase most often used is the TREC promulgated Texas Real Estate Contract plus addendums specific to the property you desire to purchase. It covers all terms and conditions of the purchase including:
- purchase price
- amount of earnest money and contingencies allowing for its return to you in the event you don't consummate the purchase
- contingencies (financing, inspection, etc.)
- personal items you wish the seller to include (washer/dryer, patio furniture, refrigerator, unique furniture or art piece, etc.)
- closing date
- possession date which could be before closing or after closing depending on both Buyer and Seller circumstances.
- time limit after which the offer will expire (prevents the seller from holding on to your offer while waiting for a better one)
- responsibilities of both buyer and seller
- option period and associated option fee which allows you time to complete your inspections and provides you with a contingency to terminate the contract in the event you discover problem(s) with the property you wish to purchase or circumstances change preventing you from proceeding with the purchase.
Once you make the offer, we present it to the Seller through their Agent. In special cases, we will request to be present at the time the Seller and their agent reviews your offer in order to answer specific questions and give direct answers to certain terms unique to your purchase offer. Seller may accept it, prepare a counter offer, or reject the offer all together. Once all terms of the offer have been accepted by both the Seller and the Buyer in writing, it then becomes a legally binding contract.
Next Step...Negotiate with the Seller