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How to Make an Offer
Once you have been pre-approved and then have
found a home you’d like to buy, I will draw up an
offer, signed by you, to be submitted to the seller.
Even after the seller accepts it, the contract will
be evaluated by your real estate attorney and may be
changed or even voided entirely during the Attorney
Review period. (See article on the Buying Process
and Timeline).
Elements of an Offer
A New Jersey real estate contract is typically 4-6
pages long and every agency has a boilerplate form
where blanks are filled in by the buyer’s Realtor
when making an offer. The main parts of the contract
include Price and Terms.
The price is whatever you decide you’d like to
offer. I can help you with that by reviewing comps
for what sold recently in that price range. The
terms of an offer are many. Below are some examples.
Some types of terms in a contract:
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The amount of your deposit.
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Whether you are paying all cash or borrowing
money in the form of a mortgage.
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The strength of your pre-approval or - your
financial stability.
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How soon you will perform an inspection.
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How fast your lender can produce a final
mortgage commitment.
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When you can close.
Other Paperwork Attached to an Offer
There are many pieces of paper that are submitted
along with the purchase contract. Some are required
by the state of New Jersey and others are not.
Some documents attached to a contract:
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Cover letter: This is not required and not all
Realtors write one. I will draft a very
professional and succinct letter outlining the
benefits of your offer and you as a quality
buyer.
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Opinion 26: This is required and must be signed
by you and the seller. It advises you of your
legal right to have an attorney represent you,
among other things.
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Lead Paint Disclosure: This is required and
comes pre-signed from the seller. You must read
it and then sign yourself. It discloses whether
or not the seller has any knowledge of the
presence of lead paint in the home.
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Pre-approval letter: This is the letter from
your lender, on letterhead, approving you for a
loan for the specific amount you are borrowing
and should accompany the offer.
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Seller’s Disclosure Form: It is not required, in
the state of New Jersey, for sellers to fill out
a seller’s disclosure form. However, if they do,
they will expect you to read it and sign it
before they accept your offer. This form is
several pages long and outlines everything that
the seller knows about the condition of the home
and its systems.
Presenting the Offer
There are different ways in which to present an
offer. It’s usually up to the seller as to how he
wants to receive it. I will always attempt to
present the offer in person but that may not be an
option. The next best thing is to hand-deliver it
with the introductory cover letter. Some listing
agents prefer the offer to be faxed or scanned &
emailed. It is in these last two scenarios where a
strong cover letter is so important as it will serve
as your only introduction. The sellers do not know
you and it is my job to present your offer as best I
can, even without the opportunity of a face-to-face
meeting.
The seller has officially accepted your offer when
he signs it. However, the signed contract then gets
forwarded to both your and the seller’s attorneys
for a three day Attorney Review period. (Again, see
article on Buying Process and Timeline). There are
opportunities in that time period for the contract
to be voided altogether should you or the sellers
have a change of heart.
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