Writing an Offer to Purchase Real Estate
When you finally discover the house of your dreams and are desirous of buying it, start the negotiations by writing an offer. Your offer is the first step, which would instigate negotiations with the owner of the house and would eventually result in a sales contract. Initially, try to place yourself in the owner's position and understand his/her reaction to what you choose to put in your offer. In order to achieve your objective, try to assess the situation from the seller's and buyer's point of view, this will help you negotiate better.
Writing an offer is not as easy as it sounds. You can't just commit to pay a certain amount, write it down and hand it to the seller of the house. Since houses cost a lot more than petty sums, there is a need to safeguard both the seller's and buyer's interest in the deal. So, while writing an offer, contingencies and protections are given due consideration and are included with the buyer's offer. This not only reduces risk for both the factions but also protects the investment.
A real estate property offer comprises of the price proffered, by the potential buyer and all details concerning the purchase of the property, for instance; how a buyer intends to finance the property, the amount of down payment, closing cost details, inspections required, timetables, if personal possessions are a part of the deal, cancellation terms, repairs needed, professional services required, the date of the property hand over and the agreed course for settling disputes.
Buying a house holds as much significance for the seller as for the buyer. For the buyer, it is nothing like previous purchases or past investments. A house impinges on the finances like no other acquisition. For the seller, acquiring a hefty sum in exchange for his/her property may mean possible future investments. In both the cases, finances are affected duly but it must be remembered that the decision is not just of monetary importance. In the 30 minutes that you would probably take to pen down your offer, you will consequently affect the next ten years of your life if not the whole of it. While considering your offer, the seller is in the same boat. Acceptance or denial whatever his/her decision maybe, it will also change the course of his/her life.
Buying or selling a house might sound like just another decision that you have to make at one point or another but it is not. Every real estate book and article will tell you the same thing, whether you feel that its importance has been blown out of proportions, it is the simple truth and there is no changing it.
Contingencies in a Purchase Offer
Some property transactions might be fraught with a few minor challenges but most proceed smoothly without a glitch. In order to reduce risk, it is crucial that a buyer consider all possible problems and difficulties that might pop up and notate terms, which allow the annulment of the contract without penalty, if something goes wrong. Such protections against risks are called contingencies and must be a part of the buyer's offer for the property.
For instance, when 'move up' buyers decide to buy a property prior to selling their present home, they include conditions in their offer. If you are a 'move up' buyer and your previous home has been sold but the sale has not been closed and is pending, then it is necessary that you make the closing of your home a condition in your offer, for the property you intend to buy. Failure to include this contingency in your offer might land you in a financial flux, where you would be stuck with two mortgage payments instead of one.
Write an offer that would safeguard your interest by including all other common contingencies in it. To make the payment on the house, you will need a mortgage, therefore make the acquisition of appropriate financing a condition in your offer. The next condition should be that the house must appraise for the amount that matches the agreed upon sum. At some stage of the escrow period, you would be interested in getting the house inspected by certain professionals, add another contingency that the house must pass all the different inspections.
Essentially, contingencies are a backup plan, just in case you are unable to deliver on your promise or honor your commitment of buying the house from the seller. Without contingencies, you lose your protective armor and are vulnerable if you breach a contract. You can easily relinquish your fortune if you forget to add conditions and contingencies with your offer, or land in a worse situation.
Earnest Money Deposit
Once you have determined the price you want to ฝากขายที่ดิน offer, the second crucial decision is resolving the amount you want to deposit with your offer. 'The earnest money deposit' as it is often called, must be big enough to convince the seller that you are a serious buyer but must not be so high as to risk your finances if things do not work out.
Most agents advise their buyers to allot a sum, which is less than 2% of the price offered to the seller. When the deposited amount exceeds this percentage, the lender will be curious to learn how you managed to acquire the funds. If this happens, the buyer is asked for a copy of the canceled check including a bank statement, which provides evidence that the buyer had the money at the outset. Usually, this is not something to worry about, but if your escrow period is reduced and you are scarcely managing to provide the down payment on your own, there might be complications.
You never know what is waiting in the wings for you, so limit your deposit amount just in case. Although obstacles and snags are an exception and not the rule, the possibility of sticky situations cannot be ignored altogether. Supposing you and the seller get into a heated discussion and it turns into a prolonged feud, wouldn't it be better if you have a minimum amount deposited with your offer? A smaller deposit simply means a smaller risk.
In real estate, there are few rules that do not come with exceptions. Here are a few exceptions to the smaller deposit rule. When you are in the market to buy a house, you might decide to go for a house that already has multiple offers. In such a case scenario, the only way to impress a seller is through a big deposit amount. Even when buyers are offering the same price or one offering a bit higher than the others, a seller may choose to sell to the buyer with the biggest deposit.
Since larger deposits are an excellent way to grab the seller's attention, a buyer may discover that he/she maybe able to convince the seller to accept a lower price for the house, by making a big deposit with his/her offer. Providing a hefty amount up front may denote later savings.
Occasionally, closing may be fraught with prolonged delays and may cause inconvenience for the buyer through no fault of his/her own. Be sure to prepare a 'Just in case' contingency for such circumstances.
The Closing Date
The 'closing date' is a necessary part of a buyer's offer. The date provides a prior notice to the seller for moving out before the closing date and a timeline to the buyer for making all preliminary arrangements for moving into the new house. Moreover, the seller can make plans for acquiring a new place to live before the closing date. Although, transactions normally close on the set date, make allowances for delay and keep yourself flexible.
For instance, if you are living in a rented house and need to inform the landlord of your moving out of his/her property, give yourself a flexible timeline. Suppose you tell your landlord that you will move out on Tuesday, but if there is a delay in the closing of your new home and the landlord has already rented your current lodge to someone else, you might end up in a motel with your packed possessions lying in a delivery van, incurring expenditures that could have been easily avoided. Remember, a little astute judgment can save you from unnecessary expenses.
Sometimes closing goes through unwarranted delays for weeks, through no fault of the buyer. Be ready with a backup plan for such unprecedented delays.
Transfer of Possession
When the deeds are recorded the transfer of the property is deemed closed. The buyer becomes the new owner of the property. Regardless, in certain cases, the new owner cannot move into his/her new home immediately after the closing, for a number of reasons. Most plausible among those is that the seller is in the process of buying a home as well. Generally, the seller's new home is also scheduled to close concurrently, with the selling of their original property.
The closing is comparable to standing before the traffic signals, waiting for the red light to turn green. Although, the green light is witnessed by everyone at the same time, the cars at the back only start moving when the cars at the front move ahead.
Consequently, it has become a custom to allot the seller of the house three days to turn over the possession and keys to the property. In order to avoid unnecessary delays and confusion later, the date for the actual transfer of property and possession should be clearly mentioned in the offer.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น