• Why Choose Us?
• Real Estate Listings
• Area Information
• Buying a House

• Selling a House
• Buyers' Request Form
• Sellers' Request Form
• Toolbox

How to Write a Purchase Offer

Writing an offer to purchase is the first official step in the negotiation process. This basic guide to writing a successful purchase offer will help you to put your best foot forward with the seller.

1. Ask your Realtor® for assistance in writing the purchase offer.
   Although you must make the decision on the dollar amount of the offer, you should utilize your real estate representative's expertise to write the purchase offer. The required forms differ by state. Since realtor associations publish the forms, your real estate agent is the best person to look to for guidance.


2. You should have already retained a reputable real estate representative. However, if you have not, consider a Realtor® such as Karyn Schonherz.
   • She has been a professional real estate agent for the past 32 years.
   • She conducts herself according to the NAR Code of Ethics and Standard of Practice.
   • She knows your market, be it in Anaheim Hills or Southern California.
   • If you need a referral to a Realtor® in another market, she will be happy to make that connection for you. Visit AnaheimHills.com or Call 714.283.6653
   
   
3. Set out your offer amount.
   A purchase offer must include a specific price. You should have already decided on a price range for the property and will want to start at the low end of the range. If the real estate market is a buyer's market, you may be successful in a lowball offer if the seller needs to sell quickly and you can provide documented reasons as to why the offer is low, but fair. If you take this route, make sure that the offer is a valid offer and is not so low as to insult the seller. If the real estate market is a seller's market, any offer, will be more difficult to negotiate. In this situation, you may want to spice up the deal. This might be a handwritten letter extolling the virtues of the property and why you must make it your home. You can also consider ways to speed up the process by shortening inspection times or setting a quick closing date. Another good signal to express your commitment to the sale is to put down a larger earnest money deposit. These extra details could give you the edge over other purchase offers.


4. Set out the amount of the earnest money deposit.
   An earnest money deposit is simply a good faith deposit that is made at the time the purchase offer is submitted to the seller or the seller's agent. The amount of the deposit will vary dependent upon state law, local custom, and the marketplace. Do not confuse the earnest money deposit with the down payment. The earnest money deposit is strictly a deposit to secure the contract and to let the seller know your level of commitment to the sale. It is wise to ask your Realtor® or an attorney if the earnest money deposit is refundable under state contract law in the event you should have to cancel the transaction. To protect your investment, do not give the earnest money deposit directly to the seller. Make the deposit payable to a third party, such as a real estate company, a law firm, a title company, or an escrow company. The third party should place the deposit in escrow or in a separate trust account. You should get a receipt for the deposit from the third party. Last, but not least, do not authorize release of the monies until the real estate transaction is complete.


5. Submit the preapproval letter with the purchase offer.
   Submitting the preapproval letter with the purchase offer tells the seller that you are committed to the transaction and have taken the necessary steps to secure a purchase as quickly as possible.


6. Disclose the down payment and financing details.
   The total of the earnest money deposit, the down payment, and the financing terms should equal the purchase price.


7. Set out any contingencies.
   Contingencies are conditions built into the contract for your protection. If something goes wrong during the transaction, you want to be able to cancel the contract without penalty. Common contingency provisions are appraisal and inspection results, loan-funding options, and the sale of your current home.


8. What Stays with the House and What Goes
   To avoid any unpleasant surprises at the final walk-through, include a list in the purchase offer as to what fixtures and decorative items you want to remain in the house and what you want the seller to remove. Common items are generally window dressings, light fixtures, appliances, garage door openers, air conditioning units, and fans. Uncommon items might be storage sheds on the property, plants, young trees, or decorative lightning rods. The list can then be used for concession points if negotiation is necessary.


9. Address all concerns.
   The seller knows the property better than any other party involved in the transaction. Ask the seller to disclose any adverse conditions about the property. You may want to hire a professional home inspector to go through the house to seek out any other potential problems. Spell out any other concerns and request the proper inspections to allay those concerns. Request a copy of the inspection reports. Set out specific instructions that the property be maintained in good condition by the seller up until the buyer takes possession. Set a specific time for a final walk-through prior to the closing.


10. Make sure that the terms of possession are clear.
    Possession is the number one problem in a real estate transaction. To avoid miscommunication, set out the terms of possession concisely in the purchase agreement. Write the language so that possession is given 'at the time of closing', 'x days before closing', or 'x days after closing' to avoid last minute snafus that can occur. If possession occurs before or after the closing, it might be wise to draw up a rental agreement to protect the parties. Local custom may dictate which party pays for certain fees, such as tax, title, and escrow. If you do not know what is customary, ask your real estate agent or the listing agent. You can then include the responsibility for fee payments in the purchase offer.


11. Set out reasonable timetables.
    When setting out the timetables for the process, make sure that they are realistic and reasonable so as not to jeopardize the purchase. Take into consideration local custom for reporting and response times. Also, consider whether or not the parties are all local; if either the buyer or the seller is not in the same locale or time zone, additional response time may need to be allowed.


12. Be clear about the expiration of the offer.
    You should clearly state an expiration date and time of the purchase offer. The expiration should also be reasonable and take into account the timetables. The purchase offer should also clearly state to whom the accepted or rejected offer should be delivered, most likely either the buyer directly or the buyer's real estate representative.


13. Know the best time to submit a purchase offer.
    Spring is the best season for a seller's market. Winter is gone, the skies are blue, flowers are blooming, and everyone wants to make a deal in the freshness of the season. However, Easter Sunday is the one and only day of the season that belongs to the buyer. There is little or no competition for a buyer on Easter Sunday. Not surprising then, that the absolute best day of the year for a buyer is Christmas Day. The market is at its lowest in December and people are usually more generous during the holiday season, making for a more gracious negotiation. A purchase offer must be clear and concise, leaving nothing to chance. The buyer must consider all angles, including the seller's needs and wants, in order to write a successful offer. A well-written purchase offer sets the tone for a successful transaction.

---