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MAKING AN OFFER
When you have chosen a property you
wish to own, it's time to make a formal "Offer
to Purchase". Even
if you have had discussions with the seller
and think you have arrived at an agreement, you
will probably find that when you write the transaction
down, many small items remain to be discussed....
Writing everything down in the beginning helps
to avoid misunderstandings and allows everyone
in the transaction to make decisions that work
for them. Here is an outline of how an offer
is generally made, and some recommendations on
the process.
Review property taxes
and establish who is responsible for
them, as well as stamp duties and legal fees. You
will want to include a provision for a title search
and for a method to transfer title.
When "buying on time" it
is advisable to register your sale agreement as
a "Agreement
for Sale", on the
title, until the mortgage is paid off and you can
take pocession of the deed. Set forth all the details
and sign the offer. Make the offer good for a specific
period of time.
Generally speaking,
the larger the down payment, the lower the price.
For a property that is sensibly priced, an opening
offer within 10- 25% of the asking price is good place
to start. If you believe the asking price is to "high",
make an offer within 10% of the top price that you
are willing to pay.
If the seller says "yes" she/he will sign
your offer as written. If the Seller wants to change
some provisions in your offer, there will be a "counter-offer",
which should also be in writing. If you both agree, you sign that counter-offer
and proceed to satisfy the terms on the contract.
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