How to make a real estate proposal in 8 steps?
As a buyer, making an offer to purchase a property is a complex process. There are two ways to make a purchase proposal: a written proposal commits you to buying the home, while an oral proposal is non-binding. Discover the 6 steps to make a proposal to buy a house or apartment.
1. Evaluate the property
The first thing to do, before making an offer to purchase a property, is to evaluate the property. You must analyze the condition and environment of the property and estimate its value fairly. This will allow you to write a fair purchase proposal. To evaluate the property for sale, you will need to take into account:
- The state of the real estate market in Collioure : the offer, the average price per m²...
- The condition of the property: the work to be done, the orientation of the house, the electrical system, the plumbing, the exterior spaces...
- The environment of the property: the district, the proximity of the conveniences, the neighborhood...
2. Make an estimate
Once you have evaluated the characteristics of the property, you can make an estimate of the property for sale. The estimation of the value of the house or the apartment in Collioure must be as accurate as possible, because once you have written your offer to purchase, you cannot go back on it.
3. Choosing between an oral or written offer to purchase
There are two types of purchase proposals:
- The written offer to purchase
- The oral offer to purchase
Regardless of the purchase proposal you choose, you should proceed to this step only after you have estimated the value of the property.
An oral offer to purchase is recommended if you are unsure of your estimate, as this type of offer to purchase is not binding.
However, it is important to know that the seller will not commit to reserve the property for you and may offer it to other buyers.
The written offer to purchase, on the other hand, is recommended only if you are confident and will not go back on your estimate.
The written real estate proposal commits you to purchase the property if the seller accepts it. If the seller accepts the proposal but you are no longer sure you want to buy the property, you will have to pay damages to the owner of the property.
4. Write the offer to purchase
Once you have decided whether you want to make a written or oral offer to purchase, you can begin to formulate or draft the offer to purchase. If you have chosen the written offer to purchase, you will need to include certain elements:
- The type of property, with a description of the property (e.g. number of rooms and area)
- The purchase price of the proposed property
- The validity period of the purchase proposal The period during which the seller can accept or reject the offer (usually 5 to 10 days)
- The modalities of the seller's response, i.e. by bailiff or by registered letter with acknowledgement of receipt
- Your withdrawal period (usually 10 days)
- Your means of financing (loan, personal contribution, mortgage...)
5. Provide for suspensive clauses
A written proposal is an important commitment. To avoid finding out when it is too late that the property no longer suits you, it can be interesting to add suspensive clauses to the purchase offer.
These clauses are very important if one of the factors is not certain: for example, if you are not sure to obtain the bank loan for thepurchase of your house in Collioure, or if the amount of work turns out to be higher than expected and therefore insurmountable. The suspensive clause should mention possible situations (for example, "I don't get the loan") and provide for the cancellation of the sale in this case.
6. Add documents
5th and last step of your purchase proposal: adding additional documents, which could help you convince the seller to accept your real estate purchase offer. These documents will reassure him about your ability to pay the price of the property for example. You will be able to attach documents such as :
- A real estate loan simulation with your debt capacity, the amount of the loan that the bank can grant you, and a certificate of financing from the bank. The seller will see that you have already taken the necessary steps with your bank and that you are solvent;
- A comfort letter from the broker indicating that the purchase project is realistic and consistent with your debt capacity;
- A letter of motivation in which you develop your motivation to buy the property, what made you fall in love with it and any other element that could make the difference. The emotional dimension is often an important component in a real estate sale.
7. Advantages and disadvantages of the purchase proposal
Here is a table showing the advantages and disadvantages of making a purchase proposal:
| Benefits | Disadvantages |
|---|---|
| Allows you to make a formal offer | May trigger a bidding war |
| Can show your commitment to purchase | May oblige to purchase if the offer is accepted |
| Allows you to obtain additional information | May require careful evaluation of the property |
| Gives you a better negotiating position | May require a large deposit |
| Can help lock down the property while you conduct audits | May require additional audit costs |
It is important to note that each purchasing situation is unique, and the advantages and disadvantages may vary depending on a number of factors. It is recommended that you assess the situation carefully before making a decision on whether or not to send a purchase proposal
How to find a qualified real estate agent with a verified license
Searching for a qualified real estate agent can be a daunting task, but it is well worth the effort to find the professional who will best meet your needs. Here are some tips to help you find a qualified real estate agent:
- Ask for recommendations from family, friends and colleagues who have recently bought or sold a property. They can recommend a real estate agent with whom they have had a good experience.
- Search online to find real estate agents in your area. You can also consult real estate agent directories or professional websites to find an agent.
- Check the real estate agent's qualifications. Make sure the agent has a valid license and is in good standing with regulatory authorities. You can also check to see if the agent has been involved in any litigation or complaints.
- Ask the real estate agent to provide references from previous clients. Take the time to talk with these clients to get their opinion of the agent and their experience working with him or her.
- Make sure the real estate agent has a thorough knowledge of the area in which you are looking to buy or sell a property. A knowledgeable agent will be able to provide you with valuable information about schools, local amenities and real estate market trends.
As far as verifying the real estate agent's license, you can usually do this online. You can verify that the agent has a valid license and is in good standing with the regulatory authorities. It is also possible to check whether the agent has been involved in any litigation or complaints. It is important to take the time to check the real estate agent's license to ensure that you are working with a qualified professional who is in good standing with the proper authorities.