This is the time to think carefully about what you want and what you can afford. If your offer is accepted, it becomes a legally binding contract. Make sure you don't include anything in the offer that you're not totally comfortable with.
WARNING!!! No verbal offers or counteroffers. All offers and counteroffers need to be in writing.
If your agent is not presenting your offers in writing, Get A New Agent!
TYPICAL OFFERS INCLUDE:
This will include the legal address along with the property description.
Remember, the seller may counteroffer with a higher purchase price - consider that when you decide on your proposed purchase price. A professional agent will advise you during the negotiations so you are able to get the best terms and price possible.
Is a very important part of the offer. It shows that this is a serious offer and you are a committed buyer. Most earnest deposits are 3% but can be as little or as much as you and your agent see fit. Obviously the more Earnest Money that is presented with an offer, the better chance you have on getting your offer accepted. It is important to be aware that if you do not meet the terms of your offer/contract, all or a portion of your earnest money may be forfeited to the seller.
This includes things you'd like the seller to help pay for or contribute to, like closing costs or home repairs.
This covers any personal property to be included in the sale, like the washer and dryer or the refrigerator etc.
Your offer can be presented with “contingencies” for certain events and those events have to happen in a certain way and time, in order for the sale to continue. Below are two examples of the most common contingencies:
Financing. You can state that your purchase is contingent on your loan approval and you will need a specific amount of time to get that approval or the offer will be canceled
Home inspection. You can state that you must receive a satisfactory property report from the inspector within a certain time frame of the accepted offer or it becomes void. You must state how much time you will need in order to have the property inspected. It is recommended to have this done immediately and in the shortest amount of time as possible in order to have a strong offer. (You can always choose to amend the offer rather than cancel it in order to fix or discount any needed repairs)
SELLER FINANCING TERMS
It is not uncommon in Baja for buyers to request terms from the property owner. The buyer should state in the offer what terms they would like, including:
- The deposit amount along with the borrowed amount
- The interest rate they are willing to pay
- The length of the loan in months or years
This is where you will state how much time you will need to close the transaction. You will need to take into consideration all of your contingencies, including property inspection and financing needed. It is important that you give yourself enough time so you do not fall out of contract and do not meet the terms of your agreement. It is highly recommended that you speak to a closing professional in order to best understand the time you will need to close.
Here you will state the company that will be performing your closing services. It is advised you speak with your agent in order to find the right closing office to meet your needs. (Many deals have fallen apart in the closing process because of inexperienced closing officers. Sometimes the cheapest is not always the best option)
OFFER TIME FRAME
Every offer should have an expiration date. Normally we see most of them with a 48 hour time frame. Depending on the market conditions, you can lessen or extend the time frame as needed. Your agent should guide you in order to get the best results which is either an acceptance or a counteroffer.
Here you will request that the property owner discloses:
- Taxes Owed
- Property Defects
- HOA Balances
- Legal Notifications
- And anything else that should be disclosed about the property