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Bidding: Once you find a home you
want to make an offer on, you will decide how much you want to
offer. Your agent should help you with this number based on
comparable sales in the area and trends in the market.
Any formal offer must
be submitted in writing. This is done by way of filling out a
Contract to purchase the home and sending it to the seller’s agent.
This contract becomes binding between the two parties when both the
Buyer and Seller have agreed to the terms and signed.
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A home that is in pre-foreclosure or
has been foreclosed upon might offer an opportunity to save
some money, but also brings with it it’s own challenges,
such as: you will likely have an increased waiting time
before the bank holding the home must deliberate and decide
AND there is a greater likelihood of there being multiple
offers if the property’s price has been drastically reduced.
Don’t expect to pay
pennies on the dollar for homes in pre-foreclosure or
foreclosure; most desirable homes in good locations
still sell for approximately 5% less than the
average home price in that market.
Negotiating: There may be some
going back and forth between your agent and the seller’s agent
before you come to a price that is agreeable to both parties.
If there is another party bidding on
the same house, you may need to make a more strategic bid –
often called a “bidding war”Your agent might encourage you to go
in with your “best and final” offer
Inspections: You will want to have
a professional home inspector give the house a thorough look.
He/she will tell you if:
- There is water in the basement
- There are cracks in the foundation
- The pipes need replacing
- Faucets are leaking
- There are any mold problems
- There is termite damage
In short, if there is
anything that is wrong with the house, this is when you would find
that out. If there are problems, such as major roof damage, you may
need to re-negotiate the price of the home – the seller may issue a
credit at closing or may repair the roof prior to closing – or this
may be a point at which the deal can fall apart.
Purchase and Sale Agreement
The Final Walkthrough
Make time for this! This is after the
former owners have moved out, but before you close on the property
and move in. It is the last chance you have to make sure that they
haven’t left items behind or taken items that should have been left,
as well as make sure they made good on any repairs they had promised
to make. Moreover, if you do not do a walkthrough and there is a
problem, then you close, you are stuck with the bill for any and all
repairs, removals, and replacements.
The Closing
You hand over the money. They hand over
the keys. There will likely be
lawyers, real estate agents and both parties to the transaction
present.
- Speak with your lender and agent to
make sure you know exactly how much to bring to the closing.
There will be a lot of signing
Some of those documents will be
your loan. If you prefer, you may politely request that
the seller and/or seller’s agent not be present during
the final discussion regarding the rate and terms of
your loan.The closing will be witnessed and
recorded in public records – that is when it becomes
official. You own your home.
The Move
We have relationships with many moving
and storage companies, some of whom even offer our clients special
rates. Please let us know if you need guidance in this area.
We get no compensation from those who we refer. Our suggestions are made
completely based on our experiences with these companies and the feedback we’ve
received on their services. |
