Accession Law LLC

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Feb 1, 2018

Update - What do I need to prepare a home purchase offer?

I often am contacted by someone who wants to buy a home who asks me, "What information do you need to put the offer together?"  Below is a list of the questions I need answered.  Please recognize that this list is not intended to be comprehensive for all transactions.  While I need this information for most or all transactions, there may be additional information needed for a particular transaction.

  1. Who is the seller and how do I contact them (email address??)?  The first thing a lawyer should do is to check for conflicts of interest.  I need to make sure the seller is not my client.  I also search past clients to see whether the seller is someone who I've represented in an unrelated matter.  While it may be possible to obtain the seller's waiver of any conflict of interest, my practice is simply to avoid these situations and to refer the buyer elsewhere.
  2. What is the property?  I need the address, and it is helpful to know what other information you have about the property, so any MLS data sheets, marketing materials, condition reports, or other information you have received is helpful.  Note that, in some instances, the property address is inadequate/incomplete information.  For example, a street address to a house might currently include 40 acres, but the seller may be only selling 2 acres.  One cannot tell the difference in those two cases by street address alone.  
  3. What else do you expect to have included?  The WB-11 form offer includes the real estate and "fixtures."  What about other items which may not be "fixtures" such as a refrigerator, range/oven, dishwasher, washer, dryer, freezer etc?  Is there an alarm system, a water softener, an LP tank, or any other "rented" appliances?
  4. When do you want to close?  
  5. Do you need to borrow funds for the purchase?  Do you have a prequalification or preapproval letter from a lender?  Approximately how much do you expect to borrow?    
  6. Do you need to sell a property?
  7. Any other "contingencies" meaning other events that will affect the purchase?  We almost always include an inspection contingency giving the buyer the right to an inspection.  We also may include a financing contingency, an appraisal contingency, well and septic inspection, survey contingency, use of property contingency etc depending upon the circumstances.
  8. What price would you like to offer, what is your target price, and what is the most you would pay?
Real estate is not a commodity, and it is a mistake to think that you can reduce the decision to a matter of price alone.