Buying A Home:
Offer & Contract
Resolve at this
point that you will act decisively when you find
the house that’s clearly right for you. This
is particularly important after a long search or
if the house is newly listed and/or under-priced.
Every REALTOR® has stories to tell about a
couple who looked far and wide for their dream
home, finally found it, and then revealed that
"we always promised my Dad we'd sleep on it,
so we'll make an offer tomorrow." Many times
the story has a sad ending -- someone else came
in that evening with an offer that was accepted.
Making an offer
entails making out a Real Estate Purchase
Contract. We will establish in the contract the
terms on which you want to buy the house, and
propose the contract to the sellers through their
agent. This is where negotiations begin. When you
and the sellers agree to the proposed terms, the
sellers sign the proposal, and it becomes a
contract to sell.
The main point of
the contract is the selling price. Other
important terms in the contract offer are:
- The
closing date
Set the date you want to take title.
- Date
of possession
The date you want to move into your new
home.
- The
earnest money
A large deposit is usually a good
indication of a sincere buyer.
- Fixtures
and personal property
Check the list of items that you expect
to remain with the property .
- Repairs
Determine whether you want to request
repairs or would rather lower the
purchase price.
- Contingencies
Other factors you want or need to meet
before the contract is final—inspections,
selling a current home, obtaining a
mortgage, review of the contract by an
attorney. Set time limits on
contingencies so that they won’t
drag on and keep your sale from becoming
final.
- The
contract expiration date
Set a reasonable time frame for the
seller to make a decision on the offer.
If you are looking
at an older house, or one that has been neglected
it is advisable to get a home inspection. It
might be a few hundred dollars, but it's worth it.
It's the inspector's job to find any problems
with the house that could cost you thousands to
repair down the road. Some inspectors have a
tendency to over play the importance of their
role and the items that they find. Get objective
opinions that you trust before making a decision
on an inspection report. Likewise, if an
inspector says a foundation is cracked but its
nothing to worry about - get a second opinion.
Ask a handyman for an idea of how much repairs
will cost and how complicated they are.
What Your Home
Inspection Should Cover:
- Siding: Look
for dents or buckling
- Foundations:
Look for cracks or water seepage
- Exterior
Brick: Look for cracked bricks or mortar
pulling away from bricks
- Insulation:
Look for condition, adequate rating for
climate
- Doors and
Windows: Look for loose or tight fits,
condition of locks, condition of
weatherstripping
- Roof: Look
for age, conditions of flashing, pooling
water, buckled shingles, or loose gutters
and downspouts
- Ceilings,
walls, and moldings: Look for loose
pieces, drywall that is pulling away
- Porch/Deck:
Loose railings or step, rot
- Electrical:
Look for condition of fuse box/circuit
breakers, number of outlets in each room
- Plumbing:
Look for poor water pressure, banging
pipes, rust spots or corrosion that
indicate leaks, sufficient insulation
- Water Heater:
Look for age, size adequate for house,
speed of recovery, energy rating
- Furnace/Air
Conditioning: Look for age, energy
rating; Furnaces are rated by annual fuel
utilization efficiency; the higher the
rating, the lower your fuel costs.
However, other factors such as payback
period and other operating costs, such as
electricity to operate motors.
- Garage: Look
for exterior in good repair; condition of
floor—cracks, stains, etc.;
condition of door mechanism
- Basement:
Look for water leakage, musty smell
- Attic: Look
for adequate ventilation, water leaks
from roof
- Septic Tanks
(if applicable): Adequate absorption
field capacity for the percolation rate
in your area and the size of your family
- Driveways/Sidewalks:
Look for cracks, heaving pavement,
crumbling near edges, stains
Before going to
the closing table, you have the right to a final
walk-through inspection of the property. During
your final walk-through you want to check the
following:
- Repairs you’ve
requested have been made. Obtain copies
of paid bills and any related warranties.
- All items
that were included in the sale price—draperies,
lighting fixtures—are still there.
- Screens and
storm windows are in place or stored.
- All
appliances are operating.
- Intercom,
doorbell, and alarm are operational.
- Hot water
heater is working.
- HVAC is
working.
- No plants or
shrubs have been removed from the yard.
- Garage door
opener and other remotes are available.
- Instruction
books and warranties on appliances and
fixtures are there.
- All personal
items of the sellers and all debris have
been removed.
It is part of my
service to keep tabs on all the contract terms
and deadlines to assure a smooth closing. The
home buying process is an emotional, complex and
time-consuming process, but it is worth it.
Nothing compares to owning your own home in a
neighborhood that you chose.
Next: Closing
& Possession
or
Return to Buying/Selling Tips
|
