Making An Offer

It is very common for a first time home buyer to be a little fuzzy about how an offer gets made. I routinely deal with buyers who think that I am going to be able to phone up the Listing Agent, describe our deal, and then get a response. I do call the Listing Agent to let them know that we are getting serious about the deal, but I don't give them the terms of the offer until later in the process.

To be enforceable, an offer for the purchase of real estate has to be in writing. It has been that way since 1677, when the British Parliament passed what is referred to as The Statue of Frauds. http://en.wikipedia.org/wiki/Statute_of_frauds

What that means as a practical matter is that when a Buyer gets ready to make an offer, I spend an hour or so in front of a computer, preparing the forms and documents for the Buyer to sign. After the Buyer has signed those papers, I then send a copy to the Seller's Agent, along with a copy of the Earnest Money Check and the Option Fee Check. 75% of all Seller's Agents will not present an offer unless there is some document that addresses the question of how the purchase will be paid for. That means that I have to also send along a letter from a lender (either a Pre-Qualified Letter or, better, a Pre-Approval Letter). If the Buyer is going to be paying cash, I have to submit what is called "Proof of Funds".