Buying

Closing The Deal!


Negotiating

An experienced professional can provide background and market information to help you decide if YOUR OFFER is what you want and need.

If the offer is accepted you are ready!! If the offer is not accepted and is not what you are looking for, then you should make a counter offer.

Don’t forget there are other things to negotiating besides price. Targeted closing date, extras included with the property, and possible finance options, are equally important.

EACH OF THESE POINTS HAS VALUE

KEEP IN MIND - WHEN YOU OFFER TOO LOW - SELLERS ARE NOT INTERESTED

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Making An Offer

An offer on a property is just that, an offer.  Simply put, it’s a buyer offering to purchase a sellers property at a set price and terms.  It is up to the seller to either

  • Accept it as it’s written
  • Counter with different terms or/and price –this is called a “counter offer”
  • Reject it completely

A good agent will show you all the properties in the area that are similar to the one you want to buy. It’s very important to see all the sold, for sale, and expired properties to make an informed decision. Use all that information to make a good offer on the home so you can become the new owner!

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Contracts

No document is as important to a real estate transaction as the sales contract. All of the terms of the closing are controlled by the wording of the contract.

Most contracts are drafted on the first form found in the drawer or on the shelf of an office supply store. Often a buyer pays extra expenses because he uses a form designed for a seller’s benefit.

The minimum that a contract must contain to be legally enforceable is:

1. Identification of the parties

2. Description of the property

3. Clear terms of payment

4. Some consideration

5. Acceptance by all parties

A contract is an offer until it is accepted by all parties and acceptance conveyed to each party.

This offer is submitted to the agent of the seller and the seller and they may . .

Accept it

Reject it

Make a counter offer (a new offer)

The deposit or earnest money (consideration) is generally placed in an escrow account.

If your offer to purchase has been rejected, your deposit will be returned.

If your offer to purchase is accepted, the funds are held until closing and will probably be credited towards your down payment.


Forming A Contract

Writing an offer to purchase is only the beginning (ok 2nd to finding the right home) Once the offer is written, a good buyer agent will present it to the selling agent for presentation to the seller.  Then they have the choice to:

1 Accept it as it’s written

2 Counter with different terms or/and price –this is called a “counter offer”
3 Reject it completely

Let’s look at each scenario

Counter offer – it’s decision time, do you want to accept the counter, change it so it’s more acceptable to you or reject it completely?

Accepted – you are good to go!! Congrats you are buying a home!!

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Home Inspection Report

It’s an excellent idea to include a contingency in your contract that you first have a good report from a home inspector. The American Society of Home Inspectors monitors home inspection standards, so check and see if your home inspector is a member. This inspection may cost you $200-$1,000. A realistic estimate of unseen repairs could be well worth the home inspection price if you find costly repairs.

A home inspection is not an appraisal. It’s an actual evaluation of the structural and mechanical condition of the property. Go with the inspector and expect the total time to be between 2 and 4 hours. It’s your opportunity to find what needs to be replaced or repaired, ask for suggestions, and get a realistic idea of what these will cost. The inspection should include evaluations of: foundations, doors and windows, roof, plumbing and electrical systems, heating and air conditioning systems, ceilings, walls, and floors, insulation, and ventilation.

Having a home inspection report can open your eyes to the true condition of your dream home. It can be your way out of a purchase agreement and may be a tool to get the seller to pay for necessary repairs.

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Insurance Protection


Title Insurance

Title insurance is not only required by all lenders but essential for your protection. It insures that the title of your home is clear of all defects and claims against the property.

Qualified searchers research the property and home against liens, judgments, and anything else that may adversely affect the value and salability of the property. They scrutinize all prior deeds, public records, and court documents.

If a defect should arise in their search they also know the correct steps to take to clear these defects and insure the property is clear for you to take possession.


Home Owners Insurance

Homeowners insurance, another name for hazard insurance, is required by the mortgage company to protect their interest. It is one of the most comprehensive insurance policies available today. It not only covers your home and personal property, but also protects you from liability exposure if someone gets hurt on your property.

Your policy protects your home and any structure attached to it, like a porch or garage. Other unattached buildings on your property are also covered as long as they’re not used for business purposes or rented to others.

Your personal property coverage protects the things in your home like clothes and furniture. It also provides protection when your property is away from home - like the things you take on vacation.

Your coverage is for perils such as fire, lightening, windstorm, hail, smoke, explosion, sinkholes, vandalism, theft, etc.

The investment a homeowner makes in hazard insurance is worth it - for peace of mind and protection against unexpected loss.

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Closing The Deal!

Closing Statement - HUD-1 = this statement spells out all costs charged to buyer and seller. It is prepared by the title company and signed by all parties.

Certified funds are needed to purchase your home.

Upon completion of signing all forms and exchanging funds you are now the HOMEOWNER!!!!!

CONGRATULATIONS! FINALLY YOU OWN YOUR OWN HOME!

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