Offer To Purchase

Offer To Purchase Basics:

Now that you have found a property that you are ready to call home it’s time to make that offer. Understanding what should go into making an offer can save you thousands of dollars and potential headaches.

  • What is the home really worth? You & your real estate agent should look at comparable home sales in the immediate area. It is important to look at actual home sales, not homes listed for sale. Chances are, if you have seen a bunch of homes already, you will have a sense of a fair asking price. Be sure to take into account other important factors such as  how long the home has been on the market and prior price drops.
  • You will sit down with your agent and make a binding written offer with a small down payment, which in Massachusetts, is usually $1,000.
  • The offer will contain key terms such as the purchase price, any seller concessions requested, inspection & mortgage contingency deadlines and closing date, and how long the offer is good for.
  • The agent will present the offer to the seller’s agent. Usually there will be a period of negotiation in which certain terms are changed.
  • If your offer is accepted, you will set up a home inspection

Mass Mortgage Buddy Offer Tips:

  •  Be sure to include anything in the offer which is important to you. Omit it at this point & it will be an uphill battle after the offer has been accepted to add it.
  • Don’t offer your “highest & best” price first. This will not leave you any room to come up if & when the seller counters with a higher price
  • Under Massachusetts law, an offer is a binding contract once accepted by the seller. Don’t put offers in on multiple homes at the same time or you may end up losing your deposit money.
  • Don’t submit an offer without a mortgage pre-approval letter. It gives the seller and their agent the impression you are just a tire kicker.
  • Be sure to structure your offer with your financing in mind – Don’t put down 5% as a deposit with your offer if you are applying for a 0% down loan

Here is a sample Offer Form from the Massachusetts Association of Realtors that most real estate agents will use to write up your offer to the Seller.

Contract to purchase