Offer to Buy

After looking for homes, finally you found your home; the next step is to make an offer to buy (purchase agreement). Real state offer shall be in writing. Once your offer has been presented or received by the seller, seller may accept, reject or counter your offer. If seller counters your offer, further negotiation will be needed it, until hopefully both parties reach an agreement. There is a binding contract, once there is an acceptance and purchase agreement had been signed by both, buyer and seller. At this point, the next step is to consummate the deal by carrying out the terms of the purchase agreement and closing the transaction accordingly.

In California, once there is a binding contract, real estate agent will proceed to open escrow and inform buyer's lender of acceptance.

What is an offer to buy?
A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate or an agreement between owner (seller/offeree) and purchaser (buyer/offeror) as to the price, terms, conditions and date of occupancy. Usually prepared by a real estate agent or attorney.

What terms to include in an offer to buy?

• Buyer(s) name

• Address of subject property

• Purchase Price

• Amount of deposit

• Financing terms, if buyer is buying with a mortgage loan.

  • Type of loan

  • Loan terms

  • Amount of down payment

  • Etc.

• Closing costs

• Timetable to:

  • Remove contingencies

  • Perform inspections

  • Appraisal

  • Provide disclosures

  • Revoke or withdraw or cancel transaction

  • Etc.

• Other terms:

  • When physical possession of property will take place.

  • If property will owner-occupied or not.

  • Repairs

  • Who will provide professional services (Ex. Escrow, Title, Insurance, Warranties, etc.)?

  • How to settle disputes should they occur.

  • Whether personal property is included in the purchase.

  • Etc.

Remember, a real estate agent acts as a liaison between you and the seller to present offers and counter offers, until an agreement is reached, thus, a real estate agent will facilitates and guide you through the complexity of the real estate transaction and will make sure all parties involve in the transaction carry out the agreed terms of purchase agreement.

If you have any question, do not hesitate to contact me, Mario Perez, 626-688-0114.