Making an Offer

Making an offer on a home is more than just picking a price. It is crucial to remember that the “offer to purchase” is the controlling document for real estate transactions. Once this completed form is signed by all parties and delivered, you have made a significant commitment. Actually, from this point on in the transaction all decisions are based on what is specified in this document, which is now called the “contract of sale.” It sets the exact terms of the transaction. It is without question the most powerful document you will be asked to sign. The closing is held once all contingencies in the contract have been satisfied.  In many respects, the physical closing at the title company is simply a confirmation of what happened days, weeks or months earlier. Click here to learn the details.

Let’s look at some specific questions sent in by DearMonty readers from across the country. Read more Q&A articles about the “Making an Offer” stage of the Home Buying process:

  • The offer to purchase

    The most powerful document Without question the offer to purchase is the most powerful document you will be asked to sign in a real estate transaction. In many respects, the physical closing at the title company is simply a confirmation of what happened days, weeks or months earlier. This point in time can be stressful…

  • The pros and cons of the right-to-cure clause

    Reader Question: We are making an offer on a home. The inspection contingency has a right-to-cure clause where we give the Seller the right-to-cure any defects found or deny the Seller the right to cure. We asked the agent for advice and were told, “It’s up to you.” How would you answer? Monty’s Answer:  If…

  • Critical Deadlines on Home Sale Documents

    Our reader this week asks about a deadline for receiving an answer to an offer to purchase a home. It is a simple question but leads to the realization that potentially there are many deadlines to follow. This instant is where planning is required up-front to avoid a stressful and frustration filled experience. The expression…

  • Mom stiffs son-in-law in real estate deal

    Families are the main sources of oral real estate transactions. Mom stiffs son-in-law is not uncommon. Brothers, sisters, cousins, grandpa; no one is immune. The advice to “get it in writing” is as or more important in families.

  • Is earnest money returned when real estate transactions fail?

    Reader Question: If we paid our good faith money to the agent, and the deal doesn’t go through, do we still get that money back, or do we have to go to court? Monty’s Answer: This question is a potential landmine. Real estate law varies from state to state, contracts are often poorly drafted, so…

  • Are real estate agents allowed to share our offer with other buyers?

    Reader Question: Our agent is suggesting that we write an offer on a home we like to include a contingency that we are willing to pay more for the house if another buyer makes an offer at the same time. They would word the contingency so the seller shares a better offer with us and…