Make An Offer

The real fun begins by making a written purchase offer.

The Statute of Frauds requires real estate purchase contracts be in writing. Oral realty contracts are unenforceable in court. Written agreements prevent misunderstandings which can occur with oral "handshake" sales contracts.

Real estate purchase contract forms are not "standard"; each one is unique. A few states have required forms or terms which must be included in residential sales contracts, but that doesn't stop home buyers and sellers from including essential terms they want.

Study the purchase contract form you will be asked to sign. When you find something in the form you don't understand, discuss that item with your realty agent. Equally important, check the form to be sure it includes the essentials. A few tips:

• Consider who wrote the form
  Many of the forms prepared by the National Association of Realtors have hidden clauses which are anti-seller, anti-buyer or both. They are written with the primary goal of getting the sale closed.
• Don't be afraid to cross out the printing you don't like
  Just because something is printed on a purchase contract doesn't mean you must accept it. Either cross it out or modify and initial the change to meet your wishes. Don't hesitate to take the form to your attorney -- preferably an experienced real estate attorney -- for advice.
• A confused mind says "no"
  Buying a home is confusing enough, but reading and understanding the purchase contract plus other required paperwork can be overwhelming. That's why many home buyers (and sellers) say "I want to think it over." They are really saying they are either overwhelmed by the complexity of the forms or they don't understand something and are reluctant to admit it.

• Start with a good printed residential contract
  Virtually any printed residential purchase contract can be easily adapted to include all the essentials of a fair agreement for both buyer and seller.

Watch out for forms with the printed name of the realty brokerage in the contract. Read these forms especially carefully because they may be very pro-agent. Some of these contracts obligate the parties to use brokerage-affiliated services such as for mortgages, homeowners insurance, termite and/or professional inspections, legal, title insurance and escrow services. Look for hidden fees in these brokerage-prepared agreements, such as a fee to the broker for "document preparation" in addition to the sales commission!