You have found the apartment or house of your dreams and don't want to miss this opportunity ? You have the possibility to make an offer to purchase to the seller in order to formalize your proposal to acquire the property. Although not very regulated by the legislation in force, an offer to purchase is binding on you. Here are some tips to help you formulate your offer to purchase properly and avoid certain pitfalls.
The offer to purchase: definition and operation
An offer to purchase real estate is a proposal made by the buyer to purchase a property at a certain price and under certain conditions. This offer can be made orally or in writing. A written offer is binding on the buyer and must therefore be carefully drafted to avoid any dispute, especially if the sale does not take place.
Upon receipt of the offer to purchase, the seller generally has a short period of time (1 to 2 weeks) to give his response. After this period, the offer is considered null and void. The seller has three options to answer.
- The seller accepts the offer to purchase at the price and under the conditions set by the buyer. In this case, and as provided by law, the sale is considered perfect as soon as there is an agreement between the two parties on the thing and the price. The sale can then continue with the signing of a sales agreement before a notary or with the help of a real estate agent.
The seller refuses the offer to purchase
- The seller makes a counter-proposal:
If the seller considers that the offer received is not satisfactory, he is entitled to ask for a new price and/or to demand new conditions. The acquirer is then free to accept or reject the new proposal and may decide whether or not to continue negotiations.
- The seller rejects the offer to purchase:
The seller may refuse the offer without making a counter-offer. The purchaser is then released from his commitment and can decide whether or not to continue negotiations. By default, the absence of a response from the seller during the period of validity of the offer is equivalent to a refusal on his part.
What to consider before making an offer to purchase
To ensure that the coveted property is obtained, the buyer can sometimes make an offer in a somewhat hasty manner. To avoid pitfalls, here are a few points to check before making your offer to purchase.
- Check the real value of the property:
To be sure to buy the house or apartment of your dreams, you may be tempted to accept the starting price asked by the seller. However, it is very common to negotiate the price by offering a lower price. To evaluate the fair price of the transaction, do not hesitate to compare the prices applied in the district for an identical property, and to evaluate the condition of the property and the amount of any work to be done (general condition, plumbing, electricity, etc.). Do not hesitate to call on a real estate agent to carry out technical diagnoses to support your proposal.
- Provide for suspensive clauses:
These clauses will allow you to withdraw from your commitment if certain conditions are not met, such as obtaining a loan for example.
Please also note that you can retract in the following cases:
- As long as the seller has not responded to your offer to purchase;
- If the seller refused your proposal or did not respond within the time limit;
- If the seller makes you a written counter-proposal.
- Write your offer to purchase carefully:
A written offer to purchase real estate is binding on you, so make sure you draft it carefully and include all the necessary elements to avoid disputes.
Would you like to write a purchase offer in order to submit it to a seller? Feel free to seek advice from a real estate agent! De Cordier Immobilier's teams will assist you in all stages of your real estate purchase project: do not hesitate to contact us!