Making an offer on a home: you need to know this

January 21, 2023 Joshua Ramirez

Making an offer on a home is an exciting moment. How do you make an offer? And what happens afterwards? How do you make sure your bid is valid? What can you do to avoid breach of contract? In this article we give you some useful tips.

The time has finally come: you have found the home of your dreams ! You intend to make an offer to the seller. But how do you best approach this? Discover it with our tips and tricks. For more details must visit: DHA Lahore Files Rates

Table of Contents

The basics

If a house is for sale, you as a buyer can make an offer. This can be done in writing or orally, also via email or SMS. However, we recommend the written option, because then you have tangible proof. Are you buying a home through a real estate agent? Then he will ask you to fill in a pre-made form.

To put an offer

Always keep the following rules in mind when bidding:

You have to provide some essential elements: address, price, period of validity of your offer…
A bid made binds you to the seller for the duration you have indicated.
If the seller accepts your offer (and there are no conditions precedent), you cannot go back on this.
The house is only really sold after an offer has been accepted by the seller. To ensure that everything runs smoothly afterwards, we recommend that you be accompanied by a notary.

Please note: a bid has the major disadvantage that it is binding, even if the seller goes wrong. Even if there are hidden defects in the house, the electrical installation has not been inspected or there are still tenants living in the house, once your offer has been accepted there is no going back. It is even possible that you are forced to buy the property or have to pay a heavy compensation to the seller.

Possible scenarios after your bid

It is the seller who decides who buys his home and at what price. After your offer, various options are possible: the seller can agree or make a counter-offer, another buyer can make a higher offer, the seller can even increase the house price if there are several offers… You can also decide to submit your offer. unless the seller has already accepted your offer.

Avoid breach of contract

To avoid being accused of breach of contract, you can invoke a condition precedent or take an option.

In the case of a suspensory condition , a sale (after a bid) is only concluded if that specific condition is met. For example, the sale will only go through on the condition that the buyer receives a loan from the bank within a certain period. If he ultimately does not receive a loan, the sale will not go through. During this period of condition precedent you are obliged to look hard for a loan.
Are you hesitating to buy the house? Then you can also take an option . The seller is obliged to agree to this option. Such an agreement means that no one else may buy the property within a predetermined period. In exchange for this favor, you must pay a fee to the seller.

Making an offer on a house is not a light decision. Prepare well based on the above rules and make sure that you never exceed the maximum limit of your budget .