The Offer to Purchase
The offer to purchase is a formal written contract setting forth the terms under which a buyer is prepared to purchase your home. Unless you're acting as your own agent, a buyer's real estate agent will submit an offer to your agent, who will then present it to you. (All communication between buyers and sellers usually occurs this way.)
Along with the buyer's bid price, the offer document will include such details as a proposed closing date, deposit amount, conditions such as financing and satisfactory inspections, and chattels and fixtures to be included in the sale. See the Listing Agreement to learn more about chattels and fixtures.
A deposit is a sign of a serious offer.
The deposit is usually between 5% and 10% of the bid price (your agent can tell you how much is appropriate), and accompanies the offer. When you are accepting an offer to purchase, your brokerage firm holds the deposit in trust until closing day, when it is then applied to the final sale price.
Time is of the essence.
An offer also generally carries a time limit. If you fail to respond within the specified time frame, the offer expires. Depending on the buyer's strategy and market conditions, the time limit could be as long as a week or two, or as short as a few hours.
Let the negotiations begin!
In all but the hottest sellers' markets, you can expect to get an offer that's lower than your asking price. When you do, it's time to consult with your real estate agent and (if you wish) your lawyer about making a counter-offer.
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