Buyer process Step 4
You've found it - your dream house! You want to buy it, your lender has pre approved you, now what?
An offer is made by submitting a signed real estate offer to purchase the property, along with proof of the type of financing you're planning on using to buy the property. Before you sign the offer, read the contract carefully and make sure you read every detail so that you understand what you're agreeing to. Ask as many questions as you like of your realtor!
The contract will spell out the following things:
Deposit- how much you plan on putting down. A common "earnest money" deposit is 1-2% of the purchase price.
Contingency on financing- this will spell out the total loan amount and the exact financing terms.
Contingency on inspection- you may make the contract contingent on a building inspection report. You will usually have to pay for this inspection, but the peace of mind or detection of a problem is well worth the cost of the inspection.
Termites- The contract may require a termite inspection. The results of the inspection may require payment for the removal of an infestation and repair of any damages from it. You should receive a written report at settlement indicating the property is free and clear of any active termite infestation.
Personal Property- This includes things like light fixtures, drapery rods, chandeliers, washers, dryers, refrigerators, heating oil in the tank, firewood, even swimming pool chemicals. It will include any other item that is not physically attached that should be specified in writing that they are being conveyed to the buyer. Misunderstandings based on verbal agreements can delay settlements as well as cause friction.
Repair Work- Standard contracts of sale require sellers to be responsible for plumbing, heating, mechanical and electrical systems rot be in working order at the time of settlement. You should conduct a pre-settlement walk through several days before to verify that these items have been done.
Title Attorney or Insurance Company- the buyer has the right to select a title attorney or insurance company . You should hop and compare prices before deciding what company will conduct your settlement.
Closing and Occupancy Date- the contract will have a closing and occupany date, and will include and arrangement with the seller in the event you can't secure possession on the agreed date. This could be accomplished with a daily rent-back agreement for post-settlement occupancy.
An offer is made by submitting a signed real estate offer to purchase the property, along with proof of the type of financing you're planning on using to buy the property. Before you sign the offer, read the contract carefully and make sure you read every detail so that you understand what you're agreeing to. Ask as many questions as you like of your realtor!
The contract will spell out the following things:
Deposit- how much you plan on putting down. A common "earnest money" deposit is 1-2% of the purchase price.
Contingency on financing- this will spell out the total loan amount and the exact financing terms.
Contingency on inspection- you may make the contract contingent on a building inspection report. You will usually have to pay for this inspection, but the peace of mind or detection of a problem is well worth the cost of the inspection.
Termites- The contract may require a termite inspection. The results of the inspection may require payment for the removal of an infestation and repair of any damages from it. You should receive a written report at settlement indicating the property is free and clear of any active termite infestation.
Personal Property- This includes things like light fixtures, drapery rods, chandeliers, washers, dryers, refrigerators, heating oil in the tank, firewood, even swimming pool chemicals. It will include any other item that is not physically attached that should be specified in writing that they are being conveyed to the buyer. Misunderstandings based on verbal agreements can delay settlements as well as cause friction.
Repair Work- Standard contracts of sale require sellers to be responsible for plumbing, heating, mechanical and electrical systems rot be in working order at the time of settlement. You should conduct a pre-settlement walk through several days before to verify that these items have been done.
Title Attorney or Insurance Company- the buyer has the right to select a title attorney or insurance company . You should hop and compare prices before deciding what company will conduct your settlement.
Closing and Occupancy Date- the contract will have a closing and occupany date, and will include and arrangement with the seller in the event you can't secure possession on the agreed date. This could be accomplished with a daily rent-back agreement for post-settlement occupancy.
Once you submit your contract to the sellers, there are 3 possible responses. They decline your offer. They can decline your offer, but counter with a different amount and terms. Or they can accept your offer. This negotiation can go back and forth until both of you either accept, or decline the offer. Once an offer is accepted by both parties, your contract is "ratified" and you can start getting ready to go to closing! Home ownership is right around the corner!
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