Making the Initial Purchase Offer ...
What’s the protocol these days in making a purchase offer on a condo? Is it as simple as an email to the agent stating a price and negotiating from there? Or would the seller expect a formal letter which, once signed, becomes contractual? And at what point do I enlist the help of a lawyer…
What’s the protocol these days in making a purchase offer on a condo? Is it as simple as an email to the agent stating a price and negotiating from there? Or would the seller expect a formal letter which, once signed, becomes contractual? And at what point do I enlist the help of a lawyer (I’m definitely going to get one, but I’m not sure whether I should do so BEFORE I submit my offer).
Usually, the broker or seller will have a form that you fill out and send to them. As people say above, the offer form is not a contract – and you are under no legal obligation to buy the home if your offer is accepted. Once you sign a contract (and you need a lawyer for that!) you are then obligated to buy.
Be sure to talk to a lawyer about all of your concerns (if you want inspection make sure that is either part of the contract, or that you get the place inspected before signing a contract.)
I’m in the same boat, so just wanted to chime in and say thanks for the help! It will be very helpful to me as long as tracyj, so thanks for asking and inputs 🙂
Usually when it comes to making offers, it would be in your best interest to have it in writing. To be honest email does suffice well which I have done in the past. I agree with the others, that you need your team in place asap if you are serious about purchasing property…especially if you have an accepted offer.
In our house hunt, we submitted offers on three properties and in each case the process was the same. We had to fill out an offer form with our offer amount and our basic financials and fax/email it to the broker. The broker provided the form but the forms from the brokers were the same.
You need your lawyer ready to go when the seller sends you the contract. Most attorneys we spoke to could begin work immediately.
“would the seller expect a formal letter which, once signed, becomes contractual?”
No – the only thing contractual is a contract that your attorney gets from the sellers attorney, and after negotiations / changes is signed by both parties.
I think in the 21st century an email is good (last century it might have been a phone call or a fax). Could be as simple as the number you’re willing to pay. To make it more compelling, include info like pre-qualification / pre-approval from lenders, contingencies (or lack thereof) ) amount of cash you expect to put down, etc.
It depends.
I’ve submitted offers both ways, verbally and in writing. Either way is fine.
It depends what the broker or/and seller want.
Once you come to terms it is put in the form of a contract which your (and the seller’s) attorney read. When the kinks are worked out and all agree to the various, both sides sign (and the money leaves your account). Then you’re in business.
If you intend to buy, you need your team in place. Interview and gather your lawyer, mortgage broker/bank, contractors, architects and etc.
Purchase of a home is the biggest investment people make.
Do go into it with open eyes.
Best of luck with this!