n offer to purchase is a refuse to "approve" of the
legally binding document, results, and so get your deposit
not just a casual back. Alternately, you could
negotiating tool. The moment the renegotiate a lower price.
seller of the real estate signs
your offer, you are obligated to Earnest money clause. Real estate
live up to its exact language. agents will tell you that a
Since you can write the offer how certain amount is necessary for a
you want to, why not include the deposit, but the decision is
clauses that smart buyers use to yours. A small earnest money
protect themselves? You can also deposit may be taken seriously,
use language that will save you if you include a clause like
money. this: "$100 earnest money
deposit, to be increased to
The Offer To Purchase - Important $2,000 upon acceptance of this
Clauses offer." Or you can have it
increased "when all contingencies
Inspection contingency clauses. are met." The reason? Suppose
You want something like this in there's an argument about you
every offer to purchase: "Offer backing out because the inspector
is contingent upon a home found foundation damage. You
inspection and buyer's approval won't have your money tied up
of the results; inspection to be while this is being resolved.
done at buyer's expense within
ten days." You can ask the real Right to assign clause. This one
estate agent for help with the is primarily for investors.
specific wording. This clause Suppose your partner isn't there
gives you the right to have an to sign the offer, or you want to
inspection done. If anything "flip" the deal to another
negative is found, you could investor, or you may need to
involve a partner for purposes of Basic financing contingency
funding the deal. You need a clause. If the loan doesn't come
clause in the offer to purchase through, and you can't buy the
that covers this. Including the home, you'll lose your deposit,
words "and/or assigns" after your unless you have something like
name on the offer is usually this in the agreement: "Subject
sufficient, but ask the real to buyer obtaining a firm
estate agent what the local commitment for suitable financing
custom or language is. This within ten days." Actually, the
allows you to add another buyer language should usually specify
or assign the whole contract to what "suitable" means in terms of
another. interest rate and such.
Closing cost clauses. You can Spousal approval clause. This
specify that the seller pays for clause can be as simple as
the closing fee, the title "Subject to a walk through
insurance, the recording fees, inspection and approval of home
and even the points on your loan. by buyer's wife (or husband or
For many sellers the price is the partner - state their name)
most important thing, and they within two days." If your wife
don't care too about the details. says no to the deal within two
What if they don't want to pay days, you can back out and get
the costs? You at least gave your deposit back. For the seller
yourself some negotiating points. to agree to this one you need to
Now get something for dropping keep the time frame as short as
each of the costs you included. you can.
This could include a reduced
interest rate if the seller is Some of the above clauses are
financing part of your purchase. normal and acceptable to all,
while others are likely to annoy
the real estate agent. That's these clauses to protect yourself
okay. The seller has the right to in your offer to purchase.
say no to your offer in any case,
and you have the right to use
About the Author:
Copyright Steve Gillman. Visit his website for:
1. A photo of a beautiful house he and his wife bought for $17,500.
2. A free book on how to save thousands buying your next home.
3. A free real estate investing course.
Visit http://www.HousesUnderFiftyThousand.com
Read more articles by:
Steve Gillman
Article Source: www.iSnare.com 
