When you plan to buy real estate, whether it is an apartment or a house, there comes a time when you will have to discuss the purchase price of the property. In most cases, the landlord makes you an offer to sell, but that doesn’t mean you should accept it, unless you think it’s an opportunity not to be missed.
Otherwise, you will have to make a real estate offer in turn. How much would it be? How to fix it? What should be taken into consideration? You will find below all you need to know about real estate offers.
How can we define an offer to purchase real estate?
An offer to purchase is a kind of price proposal on the property for sale. If accepted by the seller, the offer becomes a commitment that binds you to the seller by purchasing the property in question at the set price.
If expressed orally, it has no legal value. It does not bind you or the seller in any way, unless you decide to sign a sales agreement. On the other hand, if this offer to purchase is written and signed by you and the seller yields to it, it becomes a promise to purchase to be respected according to well-established rules.
What should an offer to purchase contain?
The written offer to purchase that becomes a promise to purchase is not to be taken lightly. It deserves your attention just as much as any document. Moreover, it is necessary to ensure that certain information clearly appears there.
Indeed, it is necessary to make sure to clearly mark the period of validity of the offer. The shorter it is indicated, the more the seller will be in a hurry to answer you. Since your right of withdrawal will be suspended, you can remedy this by applying contract cancellation conditions. For example, if you are unable to raise the requested amount or if you find faults in the property. To do this, you must first determine everything that could harm your purchase and allow you to cancel it at any time.
Like any other contract, the proposed purchase price must appear clearly with a detailed description of the property in question. The seller’s conditions, the possibilities of withdrawal, the cancellation of the offer exceeding a certain period and others must also appear on the offer.
Also read: 5 signs that a home is negotiable
What about withdrawal after an offer to purchase?
When you opt for a written purchase offer, you make a commitment to the seller to appropriate the property, so you lose your right of withdrawal. On the other hand, only a few conditions allow you to regain this right.
Moreover, when you make an offer limited in time and the seller does not express his agreement, then the offer is no longer valid beyond the time granted. If your offer does not contain a validity date, you can cancel the offer if the seller has not yet validated your proposal. If the seller writes you a counter-offer, your offer is no longer valid in this case as well.
To avoid being ripped off or falling into traps, it is strongly recommended to opt for suspensive clauses which will allow the sale to be canceled in the event of inconvenience.
Read also: Where and how to look for a rental property?