Once you've found a home in [Profile.market2]  that you like, the next step is the purchase offer.  Buyers are often times intimidated by what seems to be a complicated legal document.  In reality, the purchase offer is much simpler once it is explained and properly understood.  Your Realtor will be a huge asset in helping you understand the contract.  In this article, we will give a brief overview of the purchase offer process including the most important clauses to include in the offer.

The purchase offer is a binding legal document that covers all the details of the sale.  It includes the sale price, contingencies, financing details, closing costs, repairs needed, closing date and a lot more.

The selling price is obviously the most important factor in a purchase offer.  However, the clauses you include in your purchase offer are also vitally important.  The clauses or contingencies in the contract are what protect you from making a purchase before you have all the information you need.

Some of the more important clauses to include in your contract are:

1) The Inspection Clause

On any property you put an offer on, this is an absolute must.  This clause states that as the buyer, you have the right to inspect the property.  The offer is contingent on your approval of the results of the inspection.  This inspection is to determine if there are any major defects in the property.

2) The Financing Clause

If you didn't have the financing clause and you backed out of the contract because you didn't qualify for your loan, you would lose your deposit.  The financing clause basically says that the contract is contingent on you getting approved for the loan that you are applying for.

3) Contract Assignment Clause

For real estate investors, this is an important clause.  This gives you the right to flip the deal to other investors or get other people involved if necessary.  Basically, this clause removes you from being the only person who can close the deal.

4) Closing Date

You might not see the importance of this date but you will.  When you are buying from a person, you can always get an extension to the contract if you can't close on the date specified.  The situation changes when you are purchasing an REO or bank owned foreclosure or a short sale.  Certain lenders will allow one and only one extension to the contract while others will not allow any extensions without a hefty penalty.  Make sure that you are represented by a Realtor to ensure that your interests are being looked after.

These are some of the most common and most important clauses in a real estate purchase contract.  Although the legal language in the contract can be intimidating, just realize that all the document is meant to do is protect the buyer, the seller and their agents by covering every conceivable point prior to the purchase.

Don't forget that there is an area in the contract to insert other clauses that you want in the contract.  This area is very important when you want to add special terms such as certain contingencies or whether additional items are included in the purchase or special financing terms, etc.

There is a lot of free information available to you about buying, selling or investing in [Profile.market2] real estate.  For complete information about the [Profile.market2] real estate market including current homes for sale, property values and more, please visit the most complete websites online dedicated to cape coral homes for sale at www.livingincapecoralnow.com and www.dancraddock.com.   Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than happy to answer your questions.  Call me on my cell at [Profile.cell_phone] or email me at [Profile.email_link].

Have a Prosperous Day!