Eager Lender

Buying a home and making a purchase offer are two different things.  However, potential buyers often can not distinguish the difference of the two.  In some other places, it is common to write a letter of intent to purchase and in many ways, it seems to be the proper way to buy a home.  On the other hand, other states have policies in standard purchase contracts that permit a buyer to cancel the agreement and get back their entire money deposit.

When getting a house that is considered to be hot on the market, and if you do not have any reason to withdraw the contract in the future, you must immediately make a purchase offer.  Do not postpone just because you have second thoughts on buying the house.  If you wait for all your queries to be answered before making an offer, you can lose the chance of getting the house that you wish for.  There are a lot of probable buyers that can take away the opportunity from you.

Keep in mind that you are not the only person who as the capacity to purchase such property.  There are also other aspiring property buyers who are very eager to get the property.  They have the ability to look for an excellent unit like what you have been eyeing for.  Thus, if you already spotted the one you like, make a purchase offer immediately.

Once you give a purchase offer to the property seller, other potential buyers will lose the opportunity to buy the unit.  When the seller receives your offer, other offers can no longer get into the way, unless you cancel the contract.  It is also favorable to you because you can negotiate on the price and terms.  You can start by giving a lowball offer.  Normally, if there are several individuals who compete for the same house, your negotiation power starts to decrease.  Even though buyers are interested, they will have to give way to those who made the first offer.

Nevertheless, there are probable pitfalls when giving an immediate purchase offers.  If you are choosing between the two houses and you made an agreement with the first party, the second property might not be available when you already changed your mind.  The refund for the money deposit is not automatic.  The two parties are required to sign the cancellation instructions.  In some other areas, a seller can delay signing for 30 days, without any fees, an authorization to give back the good faith money deposit.  You can encounter different charges such as appraisal, credit report and home inspection charges that are non-refundable.  Normally, title policy, escrow and other closing costs can be cancelled.  Hence, you definitely need to be firm on your decision before you make an offer.

If you are given the option of losing the house you want, but, it is better to learn from the mistakes of others who have lost their opportunity—since they were hesitant to make the offer with urgency—instead of learning this depressing lesson on your own.

Originally published here.

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