HOME BUYING ESSENTIALS

When does an offer become a contract?

Here are some guidelines to help sellers and buyers understand the offer and counter-offer process:

SELLERS

1. When a buyer makes an offer to purchase, the seller is usually given a deadline to respond by. Please respect these response times, or request an extension prior to the deadline.
2. If you make any changes to the offer you have made a counter-offer. This means that the buyer is no longer  obligated  to any of the terms of the contract until he signs off (initials) the changes made.
3. When dealing with transaction brokers, as many companies are, the offer is not a contract until all parties have signed and initialed any changes, and the contract is delivered back to the party who made the last counter-offer. It is not sufficient that everyone has verbally agreed to the contract, nor is it sufficient for the sales agent to accept the contract on behalf of his/her customer.

BUYERS

1. When you make an offer to purchase, please give the seller ample time to respond. Your agent should call the listing agent to determine an appropriate amount of time, and to inquire if there are other offers already on the table.
2. If there are other offers, make your first offer your best offer. A seller is looking at the price and terms most acceptable to him, and the seller may deal with multiple offers in the way he deems best.
3. When dealing with transaction brokers, as many companies are, the offer is not a contract until all parties have signed and initialed any changes, and the contract is physically delivered back to the  party who made the last counter-offer. It is not sufficient that everyone has verbally agreed to the contract, nor is it sufficient for the sales agent to accept the contract in behalf of his/her customer.

SOME COMMON MISCONCEPTIONS

1. The seller must look at offers in the order they are written.
2. The seller must take the highest priced offer.
3. The seller must counter each offer and give buyers a chance to respond with a higher price or better terms.
4. The seller can deal with only one offer at a time.

Last but not least, verbal offers and acceptances are not enforceable in Florida! Until everyone has signed, initialed and has received a copy of the fully executed contract, other offers may be accepted by the seller.

This information is the opinion of ERA American Realty. We encourage you to seek the advice of a real estate attorney for any additional information or discussion about this subject matter.

Important Pre-Purchase Information 

Websites to Visit

To If you're considering a home purchase in the near future, here is some helpful information:

HOMEOWNERS INSURANCE

Please arrange for your insurance as soon as you have a contract to purchase, especially during hurricane season. 

HOMESTEAD EXEMPTION

You may file for homestead any time after you close. Take your deed and proof of Florida residency to the nearest property appraiser’s office. The deadline for any year is March 1st of the year you are filing for.