So, you’ve found a home you love and want to make an offer. What exactly is in the offer package? Your realtor will put together a series of documents as part of your offer package to present to the seller. A well-crafted offer package makes you stand out from other potential buyers.
key components included in an offer package:
Purchase Agreement: The purchase agreement is the legal contract that outlines the terms of the sale. These terms include the purchase price, closing date, and contingencies. These terms provide protection for both the buyer and seller by outlining specific requirements and approvals before the sale is complete. Common contingencies include financing contingency, appraisal contingency, and inspection contingency.
Pre-Approval Letter: This letter from a lender explains that you have been pre-approved for a mortgage and are capable of financing the purchase.
Proof of Funds: You should also include proof of funds to show that you have the necessary funds for the down payment and closing costs. This could include bank statements or a letter from your financial institution.
Earnest Money Deposit: An earnest money deposit is a good faith deposit that demonstrates your commitment to purchasing the property. The amount of the deposit is typically 1-3% of the purchase price.
In a real estate market when bidding wars are common, you should consider an Escalation Clause. It’s a clause that automatically increases the purchase price of your offer to match the higher bid. This is helpful if you get into a bidding war with other buyers.
Why it Matters
Furthermore, having a complete and solid offer package shows the home sellers that you mean business. If you’re looking for an agent that can help you put together a competitive offer package that will help you open escrow on the home of your dreams, let’s schedule a strategy session. I would love to help.