Offer
An offer is a formal proposal made by a potential buyer to purchase a property at a specific price and under certain conditions. The offer includes terms such as the purchase price, closing date, financing contingencies, and other conditions that must be met for the sale to proceed. It becomes legally binding only when accepted by the seller and all parties have signed the agreement.
Example
“Sarah submitted an offer of $450,000 for the three-bedroom house on Maple Street.”
Memory Tip
An offer is when you 'offer up' money to buy a property.
Why It Matters
Making a competitive offer is crucial in today's market as it determines whether you'll secure the property and under what terms. The strength of your offer, including price and contingencies, often determines success in competitive situations with multiple buyers.
Common Misconception
Many first-time buyers think an offer is just about price, but sellers also consider contingencies, closing timeline, financing strength, and other terms when evaluating offers.
In Practice
Sarah submits an offer of $350,000 for a home listed at $340,000, with a 30-day closing and inspection contingency. The seller counters at $355,000 with a 21-day closing, and they negotiate until reaching mutually acceptable terms.
Etymology
Comes from Old French 'offrir' meaning 'to present' or 'to sacrifice,' originally referring to presenting something valuable to another party.
Common Misspellings
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