How to make an offer to purchase?

A purchase offer is a standard step in buying real estate: it comes into play when you have found a property you're interested in and wish to make an offer to the seller. While not mandatory, making a purchase offer allows you to submit your terms and suggest a price. How do you draft an offer? How long is it valid? Is it final? We answer all your questions here.

What is a Purchase Offer?

A purchase offer, typically made in writing, is a formal proposal by the buyer to the seller of a property. It specifies the price the buyer is willing to pay and the conditions under which they are willing to proceed with the purchase. It also acts as a commitment to the seller. If accepted, both parties will then sign a preliminary sales agreement or a sales promise.

What Does a Purchase Offer Entail?

The purchase offer commits you to the seller; however, you can still retract:

• if the seller has not yet received the offer,
• after signing the preliminary sales agreement, you have a 10-day period to retract.

You cannot retract once the offer is received or accepted, but you will still have the opportunity to do so during the retraction period provided after signing the sales agreement without any penalty.

The offer usually includes a deadline for acceptance by the seller, after which it becomes void.

How to Make a Purchase Offer?

A purchase offer is used to propose your price and purchasing terms to the seller. The offer generally includes:

• A purchase price that reflects the current market value of the property and its worth, while remaining within your budget. For foreign buyers, note that in France, an offer is rarely much below the asking price unless the property is significantly overpriced or if you have other leverage, such as no suspensive conditions.
• Your conditions and suspensive clauses, such as securing a mortgage, conducting a property inspection, or selling another property you already own.
• Your financing method and, if applicable, a loan simulation. This simulation is not mandatory but can reassure the seller.
• The validity period of the offer: An offer does not remain open indefinitely. A typical validity period is about 5 to 10 days.
• The terms of response from the seller, who should preferably respond by registered letter with acknowledgment of receipt.
• The legal details: In Europe, legal details can vary significantly. It is often advisable to work with a notary or a real estate lawyer who can ensure all legal requirements are met and that the offer is drafted in a way that protects your interests.

Caution: You should not pay any money to the seller even if requested! It is prohibited to pay the seller during the offer stage; a deposit is made upon signing the sales agreement.

What Happens Once the Offer is Received?

Upon receiving a purchase offer, the seller has several options:

• Accept the conditions of your offer. They must then sign the offer indicating "agreed to" and respond by registered letter.
• Reject your offer if your price is below theirs. Note that a seller cannot refuse an offer at the asking price. If they do not respond, it means they are rejecting the offer.
• Make a written counteroffer, meaning a new offer that makes the initial offer void. This option opens the door to negotiation.

Conclusion

The purchase offer is more than just a proposed price or an opening for negotiation; it is a thoughtful proposition that takes into account many factors and requires a deep understanding of the real estate market. To draft your offer effectively, it is advisable to seek the assistance of a notary or your real estate agent!