Home Buying Proposal Guidelines
For many, buying a desired home in a preferred location is often a fascinating as well as a daunting experience. One needs to look into several aspects while buying a property. Making a home buying proposal is one such critical aspect that holds a lot of importance.
Home buying proposal can be described as the offer or bid made by a buyer to a seller indicating the price at which a buyer intends to purchase the property from the seller. While determining the offer price, there are certain criteria that one needs to consider. It is important to look at some recent home sales of similar properties in the neighborhood, a process called as “comparable sales”. One can obtain this information on comparable sales from a public record. Information about comparable sales can also be obtained from real estate agents who are members of the local MLS. Another resourceful option is the internet, where there are several websites providing such information at a nominal fee.
So as to increase the chances of a successful sale, several real estate agents suggest buyers for making two different types of home buying proposals. The first offer is quoted at a higher price range and involves other inclusions like fixing the roof, replacing tiles, renovating the interiors and repairing faults. Another offer is at a lower price range and doesn’t involve any of these inclusions. One can choose any of the two options. There are few other mandatory instructions that are required in a good proposal
- Usage of “and/or assigns”: This phrase is important to keep following the name of the buyer so as to keep all the options open.
- “This bid is dependant to collaborators confirmation”: This clause provides the option of moving away from the bid at any point of time.
- “Seller consents to have the house investigated on or before (date), with proposals dependant to purchasers’ approval of home inspection analysis”: Home inspection is the legal right of a buyer. Many times, buyers pay for a home inspection. However, the above clause provides the flexibility of asking the seller pay for the cost of inspection. This clause also provides the option of negotiating with the seller towards a reduction in their offer, if any faults have been located by the inspector.