Home Buyer's Guide

Home Buyer's Guide - closer look at...

Whether your offer is in the form of a contract or a letter, it's important to make sure it includes all of the required information.

• Buyer name and contact information.
  The offer should include the full name of all proposed buyers as well as contact information (address, phone number, etc.).
• Seller and property information.
  The offer should include the seller's name(s) and the address of the property to be purchased.
• Purchase price and terms.
  The offer should clearly state the purchase price being offered for the property as well as any terms that are required.
• Deposit information.
  The offer should include a complete breakdown of any deposits as well as a description of how they will be handled prior to closing. Typically, a small deposit is made with the offer (or shortly thereafter), with the balance of 10% of the purchase price due in 7-14 days. All deposits should be held by an attorney or escrow agent and should be refundable unless the buyer defaults on the contract.
• Closing date
  The offer should specify the proposed closing date. Of course, the date is approximate at this stage.
• All contingencies.
  All contingencies should be clearly specified in the offer. Typically, a home purchase is subject to the buyer obtaining a mortgage and conducting a series of inspections. The offer should specify time limits to satisfy each contingency.
• Contracts and attorney review.
  If the offer is not in the form of a contract the letter should clearly state that it is subject to a satisfactory contract being drawn. If the offer is a contract it should provide for an attorney review period of at least three business days during which either party may cancel.