When you have found the home you would like to buy, it is critical to work with your agent to perform the necessary due diligence on the selected property. Once you have assessed your goals and done your research, present an offer as soon as possible. Here are some things to keep in mind when preparing your offer:
If possible, try to understand the seller's reasons for selling. It is extremely useful in understanding why the house is being sold and whether the seller is under pressure to sell. Although the agent representing the seller cannot disclose the reasons without the seller's approval, you have every right to ask the agent or the homeowner.
Your REALTOR can assist you in obtaining a Comparative Market Analysis of the property to help determine the proper offer for the home.
Review the Seller's Disclosure Notice thoroughly. This is the document where the seller describes many aspects of the home including past and present issues that have or need to be addressed.
Determine your down payment. Although this may seem basic at first, the down payment is critical as it not only affects your finances, but also determines whether or not you need to pay PMI (private mortgage insurance).
Your REALTOR will write up the contract with you. The contract protects you as well as the seller. A fair offer that protects both parties allows for a smooth and successful transaction. Although real estate agents are forbidden from giving legal advice they can greatly help you understand the process and assist you in representing your interests.
Once both parties have reached a point where the deal is acceptable, you must be certain that you have a legally executable contract.
Your agent will prepare an offer that will become a purchase agreement upon acceptance by the seller. Below are items that need to be addressed in the offer: (but not limited to)
- Parties of the contract and legal description of the property
- Sale price (offering price)
- Inspection rights and possible repair allowances
- A provision that the buyer may make a last-minute walk-through inspection of the property, generally a couple days prior to the closing
- Financing arrangements & terms -- for example, all cash or subject to your obtaining a mortgage for a given amount
- Seller's promise to provide clear title/ownership
- Survey information
- Amount of earnest money and related details.
- Associated fees and party responsible for payment
- Method by which real estate taxes, rents, fuel, and utilities are to be prorated between buyer and seller
- Provisions about who will pay for title insurance, survey, termite inspections and the like
- Other requirements specific to your state, which might include a chance for attorney review of the contract, disclosure of specific environmental hazards or other state-specific clauses
- A time limit (preferably short) after which the offer will expire
- Target date for closing and possession dates
- A list of appliances and furnishings which will stay with the home
- Special contingencies
Once you submit the offer and the seller accepts it, you are legally bound to follow through on the contract.
Our real estate professionals can help you sort out all the legal and financial decisions so that you get the most value for your investment. Real T Team's goal is to make your experience as enjoyable and successful as possible.
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