THE BUYING / NEGOTIATING PROCESS

The Process A home is the largest purchase most people ever make. It's much less intimidating if you have a step-by-step understanding of the process.

Step 1: Mortgage Approval In order for an offer to be seriously considered, the seller needs to know that you are truly a "qualified buyer". It will be necessary for you to contact a Mortgage Company and provide them with financial information.

Step 2: Extending An Offer Once you extend an offer "time is of the essence". Generally speaking, the sooner negotiations are complete, the better. The seller can respond to your offer in three ways:

    Rejection Of The Offer If the seller feels the offer is not acceptable he/she may reject it, in which event negotiations are concluded, that is, unless you make a new offer for him to consider.
    Acceptance If the seller accepts your offer with no changes (which is unlikely) then we have "acceptance" and negotiations are concluded.
    Counter Offer There are five negotiable parts of the contract (see Step3). I should note that anytime you or the seller modifies the contract, the contract is no longer binding. Counter offers may be extended numerous times till we finally have agreement.

Consummating The Sale Once all parties accept an offer, there is what is called "a meeting of the minds". However, a binding contract does not exist till such time as all parties have signed the contract and it has been delivered.

Step 3: The Contract is much less intimidating if you have a basic familiarity with it prior to extending an offer. The Five Negotiable Parts Of A Contract are: (1) Price, (2) Personal Property, (3)Earnest Money, (4) Mortgage Contingencies, (5) Closing Date. When we extend an offer, I will discuss each of these with you so you have an understanding of how they can be used to strengthen your offer.

General Conditions Of The Contract
    Professional Inspections You have the right, at your expense, to secure any of the following inspections (home inspection, radon, dryvit, lead-based paint/hazard wood infestation). Seller must be given written notification of any defects per the guidelines of the contract. If problems are found, you have the right to ask the seller to make repairs or provide financial consideration for such repairs. If mutual agreement is not reached, you are relieved of your obligation to purchase the property.
    Attorney Modification Respective attorneys may make modifications to the contract (other then purchase price) per the guidelines of the contract.
    Buyer's Financing If there is a financing contingency, you must apply for and secure financing within the time frame specified in the contract. The lending institution must (1) verify you credit worthiness & (2) have the home "appraised" to ensure the value. Once the above conditions are met, the mortgage loan underwritter will approve the loan.
    Other Legal Requirements Once the loan is approved the property title will be secured, title insurance will be ordered & an updated survey of the property will need to be ordered. If the property is a condominium, the Association may be contacted.
    Walk Through Prior to closing your may request a final walk-through to inspect the property to confirm that its condition has not changed & that all designated personal & real property are in place. In the event of any damage or missing items, your attorney may request that a sum of money be placed in escrow for closing.
    The Closing When all paperwork is in order, the time & location of the closing will be agreed to by all parties. At the closing, all documents required to finalize the sale will be signed by all parties, funds will be disbursed and keys will be delivered.

Congratulations, You Have Purchased A New Home!

 

Written by : LARRY BALLARD, Broker/Owner, Total Solutions Realty, LLC.

Serving the needs of the Naperville, Plainfield & Oswego areas