Making an Offer - Negotiations to buy a Real Estate in Key West

Negotiations are handled in various ways in different parts of the country. Typically, most transactions begin with negotiation over price, although other items such as date of possession may also be negotiated. The Key West real estate agent will provide a form, usually called a contract to purchase or, simply, a real estate contract. In any case, this is a formal, written offer that conveys your terms to the seller. If you intend to have the home inspected, it should include an real estate inspection rider; if you intend to apply for a mortgage, it should include a mortgage-contingency clause; if your attorney has not reviewed the contract, it should include an attorney-approval rider. In other words, it should cover the basics. Remember, once both parties sign this document, it is legally binding.

The offer should specify a date after which it is no longer valid. This may be as little as 24 hours from the time the seller or the seller's Key West agent receives it. The offer to purchase also is usually valid only if both the buyer and seller sign it within a certain time period. As a general rule, an earnest money deposit of perhaps $500 or $1,000 accompanies the offer to purchase. Often this is the start of negotiations. The offer to purchase may be passed back and forth between the real estate buyer and seller before being accepted by both. Remember, however, that both parties must initial any changes agreed to during negotiations. Once you have agreed on terms, you will want to arrange for a Key West home inspection and review the document with your attorney if, as noted above, you included these riders in your offer. In most cases, you will not want to apply for financing until the Key West home inspection is completed and satisfactory. In Key West areas, the purchase contract will include all provisions of the transaction; in other areas, another document will be drawn up by the real estate buyer or the seller that covers such items as conveyance of title, provision for insurance, etc. In either case, you will want local key West attorney to make sure that the final document covers all aspects of the sale.

"earnest money"

In Key West, when the real estate buyer signs the offer to purchase, the buyer usually deposits a sum of money with the seller, the seller's key West real estate agent, or the seller's attorney. Your offer should specify that the earnest money deposit will be placed in an interest bearing account with the interest credited to the buyer.

Earnest money is not the same thing as the buyer's down payment although, if the sale goes through, it will be applied to the down payment. Earnest money symbolizes the buyer's commitment to take the necessary steps to complete the purchase, for example obtaining a loan. Thus, if a prospective buyer does little or nothing to complete the sale, he or she risks losing the earnest money deposit.