Offer to Purchase

Photo 2013-02-11 11.52.18 AMOnce you have found a property that you have fallen in love with, the next step is presenting an Offer to Purchase.  Your buyer’s agent will work with you to evaluate the property, research comparable sales and discuss a strategy for acquiring the property at the best price and terms for you.  This discussion will involve a consideration of the agent’s opinion of the market value, the maximum price with which you are comfortable paying, an ideal/realistic target price to shoot for in the negotiations and agreeing upon an overall negotiating strategy.  Some of the factors to consider are whether you want the property at all costs, whether it is a property you would like if you can get a really great deal, but wouldn’t be upset if you missed out on it, whether there are specific conditions/terms which impact the attractiveness of your offer and other related considerations.

On your behalf and with your input, your buyer’s agent will present an Offer to Purchase, negotiate back and forth regarding price and other terms, and reach an agreement where both parties sign an agreed upon Offer to Purchase reflecting the terms of the sale.  Although, as described below, the parties typically contemplate signing a subsequent and more complete Purchase and Sale Agreement, Massachusetts case laws has held that the Offer to Purchase is a legally enforceable contract for sale.

The typical Offer to Purchase includes the following critical pieces of information: (1)  Offered purchase price; (2) Proposed Closing Date; and (3) Amount of financing you will be seeking.  Offers also typically include contingencies permitting you to conduct an inspection of the property, perform radon testing and by law permits testing for the presence of lead paint.