Do you always use a purchase contract when making an offer?

Question

Hello fellow BP'ers. I have a question for you. When you are negotiating a deal for a SFR do you use the real estate contract when submitting your offer? How many go about it more casually until a verbal offer is agreed upon and then fill out the paperwork etc...?

Thanks in advance,

Todd

Thanks in advance,

Todd

Larry Turowski · Answer

You're talking about houses listed on the MLS?  In that case, yes, you'd need a formal offer.  Most of my deals are off market.

Federico Gutierrez · Answer

In this day and age, were everyone talks the talk. I'm using contracts. If your talking why not put it on paper?

Nothing is formal until written on paper and signed by all parties. Sorry but "handshakes" do not hold weight as they use to.

Todd Heintz · Answer

@Larry T. Thanks.  Yeah we get a lot of pushback here in the Chicago area.  They want the purchase contract submitted when making an offer.  I get that the seller might want to the perspective buyer to complete the contract to indicate that they are serious however my time is valuable as well and I don't like wasting my time if my offer is not even in the ballpark.  I wonder if this is a RE agent thing or what?

Larry Turowski · Answer

@Todd Heintz Always verbal.  I know some investors will submit an offer without a prior verbal agreement, but this is uncommon.  Almost all deals, even legislative and international treaties are negotiated verbally before being codified in writing and signed.