Earnest money/Offer?

Question

When making an offer on a for sale by owner property:
Does the offer need to be legally drawn up, should earnest money accompany the offer (being held until an agreement is reached and financing found) We know the asking price is too high, and know that we can negotiate with the owners but are unsure which step to take first. Already have been approved for an amount. Please give us a step by step idea of working with the owner. Thanks bunches!!

Answer 1

1) Make the offer using a template that you can find at an office supply store. Include in it the amount of earnest money, but dont actually include the check until you have a signed agreement.

2) Do not make the check out to the seller. Agree upon a title/escrow company and let them hold the earnest money. It will be credit towards your downpayment or closing costs, or if this is 0 down and the seller is paying your costs, it would be returned to you. It gets sticky if something falls through and the seller has your money.

3) Once there is an agreement in place, send the agreemen tot your mortgage company and to the title company. Get a home owners insurance quote or two or three and select your company. Give that info to your mortgage co and the escrow co.

4) Wait until closing, sign papers a day or two before, and then on closing day, the house is yours.


Also, dont forget a home inspection is always a good idea-- -write the offer contingent upon a "acceptable" home inspection, to be completed within 10 days.

Answer 2

The offer can be drawn up on a napkin if you would like. Its the contract (purchase and sale) that has to be on a legal form.
I would suggest you get a lawyer to look over all documents. This is why people should have Realtors. Oh also, the deposit,or earnest money should never be held by the seller. Remember this no matter what they say, it should be held by an independent 3rd party. IE your lawyer.
Good luck,
RE Agent,
Remax

Answer 3

Boy what you need is a complete explanation on how it all works, I do recommend that you work with a licensed professional and that you go to http://www.realestateformnm.com/pamphlets.html and order the free pamphlet #1 on basics of real estate sales and purchases. I can't really explain it here the pamphlet we have prepared is 14 pages long with links for research and forms needed. Our free pamphlets are a public service.
Buena Suerte