It’s a cool fall evening. The street lights are on. A woman, carrying a tablet knocks on the front door of well cared for house. Her name is Betty, and she’s a Realtor. Betty is accompanied by a man. A woman, let’s call her Nancy, opens the door. Nancy is expecting the visitors. Nancy is the owner of the house. She opens the door and the conversation begins.
Betty does the introduction. “This is Roger Smith. Roger would like to buy your house. I’m Betty, and I represent Roger.” Betty then goes silent. She sits back and takes notes.
Roger, now sitting across from Nancy, speaks first. “I will pay Three hundred fifty thousand dollars to you for this house. To show I’m serious, I’ll give you Three thousand five hundred dollars.” Roger wants to acquire some of the personal property in the house. He tells Nancy. “At the price I’m offering to you, I want that stove and oven, the refrigerator, the dishwasher, your fancy wash machine and dryer, and that hot tub. And, I’d like that big screen TV on the wall in the family room downstairs.”
Nancy is listening to Roger. She doesn’t interrupt him. Betty, the Realtor takes notes and remains silent. Roger continues. “I’d like own the house on December 20th this year. Think about it for a couple of days. If you agree, to get back to me contact Betty. Here is her email address. And, oh by the way, I do need to borrow some money from Home Loan Bank before I can close. And one more thing, while I think this is a fair price for the house, to make sure I’m not over paying, I want to have an appraisal. If that checks out we’re good to go. Oh yes, one last thing. I want to have someone inspect this place on my behalf. I’ll get that done after we agree on a price.” Roger stands up. He says to Nancy, “That’s pretty much it. What do you think?”
Nancy thanks Roger, tells him she will think it over. After sleeping on it, Nancy decides she likes most of what Roger proposed. She would like to make a couple of changes. One is the price. Nancy will sell the house for Three hundred sixty thousand dollars. And, she’d like to own the house through the holidays. She arranges to meet with Roger to explain her thoughts.
The Offer to purchase is between Roger and Nancy. Betty, the Realtor has a role. It’s an important role which can be done with care, competence, and precision. Betty’s role is to put the conversation in writing, offer some suggestions if necessary, and help assure the rules of real estate engagement are adhered to. The Offer to Purchase is written document of a conversation between a buyer and a seller. Because it’s a conversation between buyer and seller the items the parties discussed and recorded in writing are relevant. All of agreements are relevant…and if they aren’t in writing, they’re arguably not agreements between the buyer and seller.