|
Writing the Offer
Congratulations!! - You have found the property you want!!
Offers in Florida are presented in writing and with a deposit called a 'good faith deposit"
(In some cases your agent may advise you that a verbal offer would be the better option but these would be rare circumstances.)
Putting the offer in writing shows the seller you are serious and this is how the seller would expect to receive any serious offer.
All real estate contracts in Florida must be in writing.
Your buyers agent will be able to explain and guide you through 'writing the offer". There will be the amount you are offering, a time for the offer to expire, the date YOU would like to close (complete) on the property and any contingencies.
Now What?
It is very usual for the Seller to come back to you (through the agents) with a 'counteroffer'. The counteroffer will likely be a higher price and sometimes may change some of the contingencies or dates.
You may then accept the counteroffer or state the maximum price you are willing to pay for the property.
If, in the first instance you write the offer for the MAXIMUM amount you are willing to pay for the property you must make this very clear to your agent who can relay the information to the sellers agent.
Once both parties (buyer and seller) have signed the contract - it is legally binding. You are bound to purchase the property once the contingencies have been met (ie. you cannot just change your mind!).
The Seller is legally bound to sell you the property according to the terms of the contract. (Gazumping cannot happen in Florida due to this very fair system).
DATES - the dates in the contract are very important! You must not break the contract by failing to adhere to the dates agreed on the sales contract.
(ie. if the deposit is due on a certain date, make sure it has/title company or real estate attorney in advance of this date. Don't leave it to the last minute!!)
Remember the US way of writing the date is Month/Day/Year ie. April 4th 2009 is 4/3/2009
Always seek the advise of a Board Certified Real Estate Attorney to review all contracts (especially those from a builder/developer)
Contingencies in real estate contracts
In real estate contracts the contingency is a common element. Contingencies are clauses in a contract that give either the buyer or seller a way to get out of the contract if certain conditions or timelines aren’t met.
Every contract can be unique. The possibilities for contingencies are virtually endless. Some of the more commonly used contingencies would include:
Financing.
Contingencies that depend on the buyer being able to obtain financing are very common. This safeguards the buyer especially in a market where financing is hard to get.
Home Inspections
Probably the most common type of contingency is the “contingent upon satisfactory completion of inspection”. There are any number of specific types of inspection for which a contingency might be included in a contract. Some of the more common would include inspection by a qualified home inspector for hidden defects, pest inspections, water and sewage system inspections, inspections dealing with the presence of radon or mold, etc.
Visual inspection
If you identify a house and want to ensure is doesn't sell before you arrange your flight you can put a 'subject to Visual inspection' contingency in the contract. The seller will not want to give you much time - perhaps a few days, just enough time to get on a plane from the UK!
Remember, just like everything else in real estate contracts, contingencies are negotiable. Always take care before signing that you are comfortable with all contingencies included in your contract. Likewise, take time to think about what contingencies you might like to have added.
- Financial Considerations
It is standard practice to make a purchase offer contingent upon obtaining a mortgage. Because of this contingency, the seller will want the details of your financing plan included in the offer.
|
Down Payment
In the purchase offer, we will include the down payment amount you will apply toward the purchase. This will give the seller further evidence of your qualifications to secure a mortgage.
Interest Rate
Within the purchase offer, we will provide a safeguard against any dramatic change in interest rates between when the offer is made and when the loan is closed. The offer will not only be contingent upon qualifying for a mortgage, it will also be contingent upon an interest rate within a certain range.
Shopping for Interest Rates >
|
If you would like any furher advice or have any questions on writing an offer, please contact us.
|
