subject: Offering to Purchase Real Estate - "The Basics" [print this page] Offering to Purchase Real Estate - "The Basics"
The very first part of buying real estate is to put an offer on the house, but how exactly does this work? In order to answer this question, let's look into the processes that happen when putting an offer on a home that is for sale. By understanding the components to the process, you will be able to better understand the basics when it comes to putting an offer on a property that is for sale.
The way that offers are created and submitted is by using a form called a real estate purchase contract (REPC). This contract is the standing and binding contract that makes the sale process of a home official once both parties sign the form. The REPC can be as complex or as simple as you want it to be. Because of this, it is always a good idea to have a buyer's agent hired that can help you to write up a good offer. your real estate agent will be able to know how to properly right up the offer on the REPC in order to protect your best interest and to help you get the best price on the home.
The next basic that we need to talk about is being realistic. Too often first time buyers will have their agents offer a ridiculously low price on the home they are buying. This acts like a slap to the face to a seller, so make sure that the offer that you are putting in actually has some merit and is close to the figure that they are asking for the house. The best way to know how much to offer is by having your real estate agent do a cost market analysis. This means that they will look over all of the homes that have sold within the last 6 months that match the size of the home you are looking at. This average price should be the going rate of the house that you are trying to buy. Make sure to offer a price that is close to this average price so that the sellers can meet you half way.
The last part of offering on a house is to deal with counter offers. Most of the time the seller will counter back at a higher price. When this happens, it is important to create another counter offer that is closer to the offer they came back with. Buying a home is a give and take scenario, and it should be fair for both parties.
