Buyers Guide
Buying your home
Types of Mortgages
Being a Smart Borrower
A Home Buyer's Dictionary
Once you've found a house that comes closest to meeting all your requirements,
it's time to make an offer. Before you do, here are some important points
to consider. Making an offer is the same as making a sales contract.
If the seller accepts it, you have a binding agreement. This is why your
first offer should be as near to a sales contract in your favor as you
can make it.
There is no "standard real estate purchase contract." You can
modify or add anything to standard contract form. If the seller agrees,
you have a deal. If not, you negotiate or keep looking.
Your offer should state:
- what fixtures, appliances and personal property (draperies, furniture, etc.) are to be sold with the home.
- your deposit (earnest money) will be refunded, and the sale canceled, if you are unable to obtain financing within a certain period of time.
- your deposit will be refunded, and the sale canceled, if you are unable to sell your present home within a specified period.
- a wood infestation report should be provided stating the house is free of termites, beetles, carpenter ants, and damage done by such insects.
- a certificate will be provided that the house is structurally sound, and that the plumbing, heating, electrical system, and appliances are in working condition.
- how reserve accounts (prepaids) for taxes, assessments, premiums and interest on assumed mortgages are to be divided between buyer and seller as of the settlement date.
- the grounds and the home's interior be cleaned, and rubbish and debris removed before you take possession.
Negotiable costs include those for title search, property survey and building
inspections. The seller must provide a title, free and clear of all liens
and encumbrances, except those agreed to in the contract or of which you
approve after receiving the title search report.
Lenders or title insurance companies sometimes require a property survey
to determine exact locations of the house, property lines, easements and
rights of way. Either buyer or seller can pay for this.
To make sure the service is being done in their interests, many buyers
pay for inspections to determine structural soundness, and condition of
plumbing, heating, electrical systems and appliances.
Before you sign your offer, make sure it contains the sale price of the
home, the method of payment, the time you want possession of the property,
and other items as described above.
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