Once we find the perfect home you will want to make an offer. Several factors come into play at this point.
Price: First and foremost we want to find a fair price to offer. We will review comparable properties in the neighborhood, consider the condition of the property, the length of time the property has been on market, and perhaps the reason the seller is moving. We need to define how much of the purchase price is going to be in cash verses how much is going to be financed.
Length of Contract: We also need to consider the length of the contract; are we wanting to close quickly (under 20 days), normally (within 30 days) or do you want a longer closing (over 45 days).
Condition of Property: Normally the condition of the property is determined during the option period by doing inspections.
Length of Option Period: The option period is a predetermined time during which the Buyer can leave the contract for any reason. Normally the option period is between 5 to 10 days. During this time the buyer can have the property inspected, repairs can be negotiated with the seller and a decision can be made about leaving the contract or staying in the contract and proceeding to closing. If the buyer leaves the contract during the option period, the earnest money is refunded to the buyer. If the buyer decides to stay in the contact, then the earnest money is retained by the title company, and the earnest money & option fee are usually credited to the buyer at closing.
Seller's Disclosure: In most cases a seller must provide a disclosure of the condition of the property. This form will be provided to the buyer and should be given to the inspector.
This post originally appeared at http://activerain.com/blogsview/4324480/buying-a-property-step-3-making-the-offer
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