Step 3: Writing an offer on a home

Here are some contract basics:

Earnest Money  When you write an offer on a home, you will been to write a check for an earnest money deposit.  How much do you need?  It's always negotiable, but you need to offer a large enough amount to show the sellers that you are "in earnest" about buying their home.  At closing, the earnest money will be credited toward the amount you owe.

Sales Price  One of the hardest things to d when writing an offer on a home is to find the right price to offer.  If you offer too low of a price, you run the risk of offending the seller....and either not getting the home or having to pay the seller a higher price than they normally would have taken.  If you offer too high of a price, you run the risk of missing the seller's "bottom dollar" and paying too much for the home.  This is the main thing that has to be negotiated in a contract.

Financing  If you are getting a loan to purchase the home, you need to make sure that the contract states that the contract is contingent upon the financing and that their is enough time allowed to get your loan approval.

Personal Property  If there is any personal property that you expect to stay with the home, be sure they are listed in the sales contract.  Some items that are considered personal property may appear to stay with the contract, so be sure to talk with your real estate professional about what you are expecting to stay with the home.

Closing Date  The closing date needs to provide enough time for the loan processing and the title work to be done.

Possession Date  Possession is usually the same day as the closing.  If you decide to let the seller stay after closing, or if you move in early, you need to consider financial, insurance and liability issues...and put them in writing.

Taxes  Property taxes are normally pro-rated at closing.  This means that the seller gives you a credit for the part of the year they owned the  home....and then you pay the taxes.

Inspections  Make sure that you include contingencies in the contract for any inspections you want done.  We'll talk in more detail about possible inspections later.

Title Issues  Before you close on the purchase of a home, the title needs to be clear.  The closing company (or Abstract Company or Title Company, etc.) will do that for you.  You need to make sure the contract covers what happens with title problems are found.

Linda Grissette of The Best Seller GMAC Real Estate welcomes you to her Just for First Time Home Buyers web site.  Linda serves home buyers in St Charles MO, St Peters MO, O'Fallon MO, Lake St Louis MO, Wentzville MO or Harvester MO (and other areas of St Charles County Missouri).  If you are wanting to buy a St Charles MO home for sale, a St Peters MO home for sale, an O'Fallon MO home for sale, a Lake St Louis MO home for sale, a Wentzville MO home for sale or a Harvester MO home for sale, you've come to the right web site.  St. Charles MO first time home buyers, St. Peters MO first time home buyers, O'Fallon MO first time home buyers, Lake St. Louis first time home buyers, Wentzville MO first time home buyers, Harvester MO first time home buyers, and St. Charles County first time home buyers will all find the help they need on this web site.

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