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Tips on Making an Offer to Purchase a Home and Protecting Yourself



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By : marco benavides    99 or more times read
If you have finally found the home you want and at a price that you can afford, then it is time for you to make the formal offer. However, there are steps that you can take to protect yourself in case something goes awry. This should be an exciting time for you, and there will be many things going through your head, but you need to really be sure that you and your family are completely serious about the home.

If the seller decides to accept the offer that you make, it becomes a legally binding agreement, and you could lose some or all of your earnest money deposit if you decide to back out. Most real estate experts will suggest that you get mortgage pre-approval when you begin your home search. If you have mortgage loan pre-approval, you will not have to worry about finding financing for the home. One of the ways that you can lose your deposit is if you cannot find the necessary financing, and pre-approval takes care of that before it becomes an issue.

Even if you eliminate the financing issue, there are other things you might want to consider such as a home inspection contingency. This will allow you to back out if there is something seriously wrong with the home and it is discovered during inspection. You have to be clear about the contingencies because they are what will protect you in case something goes wrong.

You should not go overboard with contingencies unless you do not want the seller to take you seriously. Yours may not be the only formal offer the seller gets, and a seller might even take a bit less money from someone who does not have 20 pages full of contingencies that are not really important or necessary.

If you want the seller to take you seriously, offer a serious deposit, while at the same time offering as little as you can without making the deposit an insult or a joke. It is a fine balance, but one that you must find in order to protect your interests. However, since there is a possibility that you could lose at least part of the deposit, you do not want to have too much money at stake.

You need to take a careful look at the offer to purchase form and ensure that your most serious needs and concerns are met. If you are not experienced in real estate, then make sure that someone who is experienced, knowledgeable and professional is helping you along. A real estate agent by your side can help you to avoid some very serious mistakes that might end up costing you a lot more than what you would have paid the agent.

Once you have read the offer to purchase form carefully and you have made sure your concerns and needs are addressed, then it is time to make the offer. That is usually handled by your real estate agent and you have to wait and see whether the seller will decide to accept your offer. If the seller accepts, then you are well on your way to being a proud and happy homeowner.


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