Essentially, “making an offer” means proposing a price to buy the property, and depending on the seller, the listing agent, your own agent, and the current housing market, that proposal could be equal to, less than, or more than the asking price. The process of actually drawing up an offer on a home in which you’re interested is a bit complicated. Here are a few basic things that are important to know about making an offer. The offer: • must conform to local regulations and standards; • must mention the amount being offered as well as the actual asking price (doesn’t apply in some states); • must include any terms and conditions on the purchase; • must be drafted and signed; • must be forwarded to the seller through an agent (your buyer’s agent or the seller’s agent); • is not a binding sales contract; • is the buyer’s offer on the house based on its current condition and according to the terms and conditions; • is subject to change if the seller doesn’t agree with your terms; • can be refused if the seller doesn’t accept the amount being offered; • becomes void if the seller makes any changes, and becomes a counteroffer, which you can accept, refuse, or change. Counteroffers are actually quite common, and can go on for a while, back and forth between buyer and seller, until both parties are satisfied (or not, in which case the deal is off). The offer doesn’t actually become a contract until all parties agree to all terms, conditions, and changes — in writing.
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