What is typically included in an offer to buy a home?
- Laura Apostolopoulos
- Feb 6, 2023
- 2 min read
Updated: Feb 11, 2023
When you make an offer to buy a home, there are several important elements that should be included. Most offers to purchase a home include a purchase price, closing date, earnest money deposit, financing terms, and any other special contingencies.
Purchase Price – The most important element of any offer to purchase a home is the purchase price. The purchase price should reflect the current market value of the home, taking into account any special features or conditions.
Closing Date – The date that the buyer and seller agree on when the deal will be finalized is known as the closing date. This is typically 30-45 days from the date the offer is accepted, but can be negotiated to accommodate both parties’ needs.
Earnest Money Deposit – The earnest money deposit is a good faith payment made by the buyer to the seller to show that the buyer is serious about the purchase. This payment typically ranges from 1-3% of the purchase price and is refundable if the buyer cancels the deal for a valid reason.
Financing Terms – In most cases, buyers will need to secure financing in order to purchase the home. The financing terms should be included in the offer to purchase, such as the type of loan (fixed or adjustable rate), the length of the loan, and the interest rate.
Special Contingencies – A special contingency is an extra condition that must be met in order for the sale to go through. A common example of a special contingency is a home inspection, where the buyer will pay for an inspection of the home and can cancel the deal if any major problems are found. Other special contingencies may include the sale of a buyer’s current home, or a specific timeline for the buyer to obtain financing.
When you make an offer to purchase a home, it is important to include all of these elements in order to ensure that both parties are protected. An experienced real estate agent can help you negotiate the best terms for your purchase and make sure that your offer is complete and accurate.
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