How to make a home purchase proposal

The road that leads to buying a new home is long and involves a series of essential steps to complete the negotiation. It is always an important decision that must take into account a number of factors that can affect the choice.

Once the property that meets our needs has been identified, the next step is to formulate the home purchase proposal. Since this is a decisive moment during the sale, the secret is to rely on the advice of a qualified real estate agency.

But let's see in detail how to make a home purchase proposal, with the advice of Engel & Völkers experts.

PROPOSAL FOR REAL ESTATE PURCHASE: WHAT IS IT?

Wanting to provide a definition, the purchase proposal is an agreement between a potential buyer and the seller, with which the former expresses his will to buy the property at a given price and by a certain date.

Basically, it is the declaration of intent to buy that is expressed by the buyer, unilaterally binding him to keep his word. In fact, we speak of an irrevocable purchase proposal, precisely because the interested party cannot revoke his intent until the deadline indicated; on the contrary, the seller is free to choose whether to accept the proposal or not, even before the indicated date.

The commitment to purchase is usually followed by an amount of money that has the value of a deposit, calculated in proportion to the value of the property. As an alternative to the irrevocable proposal, the interested buyer can opt for the preliminary sale or real estate compromise, which supplements or replaces the house purchase proposal. In this case, it is a contract that binds both parties to conclude the negotiation, anticipating the final contract.

WHAT SHOULD A PURCHASE PROPOSAL CONTAIN?

With reference to the property purchase proposal, what to write and what information to report is usually defined with the support of the real estate agency. In particular, it must be drawn up in written form and must contain:

- personal information of the proposer;

- elements that identify the property (surface, cadastral data, etc.);

- duration of the purchase proposal, i.e., the term up to which it is irrevocable (usually between 7 and 15 days);

-the price;

- payment methods and timing;

- indication of the deposit (usually 10% of the sale price);

- any additional clauses.

FROM THE PROPOSAL TO THE PURCHASE

Once the proposal is submitted, the seller has time to decide, while the potential buyer remains bound by his offer. But what happens if the home purchase proposal is accepted? And what, instead, in case of refusal? Here are the main hypotheses:

- if the seller accepts the proposal, he will only have to sign it and inform the buyer of the acceptance (by registered letter or other formal means); from this moment, the proposal and its content become binding for both parties, becoming a full-fledged contract; even the deposit takes on a confirmatory value;

- if the seller rejects the proposed purchase of the property, he is also required to communicate it and to return the amount paid as a deposit.

Both parties, in any case, have the right to reconsider: the buyer has the right to revoke the purchase proposal, provided it is communicated before any acceptance; if it were the seller to change his mind, however, he would be required to pay a compensation equal to double the deposit paid. To protect yourself from possible mistakes or unfavourable situations, it is recommended to ask for the support of a professional in the sector.