Making an offer on a home is more than just picking a price. It is crucial to remember that the “offer to purchase” is the controlling document for real estate transactions. Once this completed form is signed by all parties and delivered, you have made a significant commitment. Actually, from this point on in the transaction all decisions are based on what is specified in this document, which is now called the “contract of sale.” It sets the exact terms of the transaction. It is without question the most powerful document you will be asked to sign. The closing is held once all contingencies in the contract have been satisfied. In many respects, the physical closing at the title company is simply a confirmation of what happened days, weeks or months earlier. Click here to learn the details.
Let’s look at some specific questions sent in by DearMonty readers from across the country. Read more Q&A articles about the “Making an Offer” stage of the Home Buying process:
A New Option for Today’s Home Sellers It is easy to sell a home in today’s new economy. It is a strong sellers’ market. More and more home sellers recognize this trend and are selling independently. What’s going to happen when that offer comes in? An offer on our home happens only a few times […]
The most powerful document Without question the offer to purchase is the most powerful document you will be asked to sign in a real estate transaction. In many respects, the physical closing at the title company is simply a confirmation of what happened days, weeks or months earlier. This point in time can be stressful […]
Reader Question: We are making an offer on a home. The inspection contingency has a right-to-cure clause where we give the Seller the right-to-cure any defects found or deny the Seller the right to cure. We asked the agent for advice and were told, “It’s up to you.” How would you answer? Monty’s Answer: If […]
Our reader this week asks about a deadline for receiving an answer to an offer to purchase a home. It is a simple question but leads to the realization that potentially there are many deadlines to follow. This instant is where planning is required up-front to avoid a stressful and frustration filled experience. The expression “the devil’s in the details” may have originated in a real estate transaction.
Families are the main sources of oral real estate transactions. Mom stiffs son-in-law is not uncommon. Brothers, sisters, cousins, grandpa; no one is immune. The advice to “get it in writing” is as or more important in families.
Reader Question: If we paid our good faith money to the agent, and the deal doesn’t go through, do we still get that money back, or do we have to go to court? Monty’s Answer: This question is a potential landmine. Real estate law varies from state to state, contracts are often poorly drafted, so […]
Reader Question: Our agent is suggesting that we write an offer on a home we like to include a contingency that we are willing to pay more for the house if another buyer makes an offer at the same time. They would word the contingency so the seller shares a better offer with us and […]
Reader Question: We have a post closing occupancy problem. We closed on our home purchase in December. The contract calls for the seller to vacate 30 days after closing. The date and time set to deliver the keys and final walkthrough were today. This morning, the seller called to say they hadn’t finished moving out and […]
Reader Question: We have been combing the market for several months, but nothing has hit on all cylinders until a new house came up yesterday and it has everything we need and more. It’s pushing our price limit at an asking price of 449k. We met our agent to see it this morning, and it […]
Reader Question: We consistently told our Realtor that we wanted a swimming pool or a house where the backyard was big enough to put a swimming pool. We bought a house that had a yard big enough to put a swimming pool, and we find out from the pool company that there’s an easement in […]
Reader Question: While attending an open house, the agent had a contract form displayed on the kitchen counter. They explained it as “what we sign if we want to buy the house.” We thought it was high pressure or presumptive because we showed no interest in the house. We are curious to why they displayed […]
Reader Question: If you make a full price offer on a property, can the seller come back with six thousand dollars more than the listing? Isn’t a listing a good faith agreement to sell for that price? Mike C. Monty’s Answer: The seller can counter-offer the list price with a higher price. It would be […]
Reader Question: My wife and I plan to move to a retirement community. The plan involves selling our present home, and buying a duplex with monthly costs for services. Can you advise on buying a home in a situation where the agent handles all the details of the transaction? We are on a waiting list (deposit of $1500) that entitles us […]
Reader Question: Hi Monty, My daughter has been actively looking for a house through a Realtor. Every time she finds ‘the right house’ for her and her future husband, and bid on the house, someone has paid the full price for the house. Do you have any suggestions on what she can do? She is […]
Reader Question: When putting a bid on a home, how much below the asking price is a reasonable first bid? Christina H. Monty’s Answer: Hello Christina, that is a good question. It is not an easy question to answer because with each property the circumstances of the seller are unique and your circumstances are also unique. […]