Making an Offer to Purchase
When you select your new home, I will communicate with the selling party by means of a written offer. When the offer is accepted by the buyer and seller, it becomes a legal contract. In Colorado, we use contract forms approved by the Colorado Real Estate Commission.
The information below is required when filling out the purchase contract.
YOUR NAME: How you will take title to the property.
THE AMOUNT OF EARNEST MONEY DEPOSIT: Generally the amount is negotiable; however, the range of acceptable deposit is usually between 2% and 5% of the purchase price. A personal check is used most often.
OFFERING PRICE: The amount you’re are willing to pay; the amount of down payment and loan amount – loan terms – and your agreement to pay for an appraisal of the home.
INCLUSIONS/EXCLUSIONS: Items to be included/excluded from the home.
TITLE INSURANCE: In Colorado, this item is normally paid for by the seller.
DATE FOR CLOSING: If you will be using equity from the sale of your current home, the closing date of each transaction can easily be set. In some states, equity is not always available at the time of closing, but follows by a few days. Check with your listing broker or attorney to determine when your equity will be available. Other factors affecting the date of closing are the length of time to approve your loan and the date the seller agrees to give possession.
DATE OF POSSESSION: Although the possession date is a negotiable item between you and the seller, during the offer and acceptance stages of the contract it is customary for possession to be delivered at closing.
SIGNATURES: In Colorado, an offer and acceptance must be signed by ALL PARTIES to the agreement before a contract is consummated.