NEGOTIATING THE PURCHASE
You’ve found it --- your “dream” house! You want to buy it. Now what? You make an offer by submitting a signed real estate purchase agreement with the type of financing you desire.
This is it, this will be the sales contract if the seller accepts it. Once you and the seller sign the paper, you are agreeing to the contract conditions. Before you sign it, read it carefully and make sure you understand it in every detail. Ask questions. Verbal agreements must be written into the contract.
OFFERS AND COUNTER OFFERS
Your James W. Smith Real Estate Sales Agent will prepare a purchase contract according to your instructions and will take the offer to the listing Realtor. In some cases the seller will accept it as written, or make “counter offers” on unacceptable aspects, or reject it. The selling Realtor will then bring back the offer to purchase to the home buyer, who can accept it, counter-the-counter offer, or reject it. The offer to purchase becomes a contract when all parties have initialed every counter, signed the offer and received notice.
When you sign the offer to purchase you also will have to submit a deposit to show that you are earnest about your desire to buy – appropriately called “earnest money.”
CHECKING YOUR CONTRACT
Purchase Agreements differ, depending on circumstances, but there are several provisions you may want to include.
- Deposit. The amount of “earnest money” should be clearly stated, plus the amount of down payment you will be paying at closing and your avenues of financing. A common purchase deposit is 1-3% of the purchase price, deposited in a non-interest bearing trust account and returned to you if the sale is not completed through no fault of your own at closing.
- Financing Contingency. Specify the total loan amount, type of loan and the exact terms.
- Negotiate the closing date and possession of the house. Often occupancy at closing or within five (5) day, but this can be negotiated.
- Inspections. If you feel the property may have structural or other defects, you may have inspections done.
- Personal Property. Any items that are not permanent fixtures and are to remain in the house – washers, dryers, or refrigerators, etc. – must be specified in writing. Misunderstandings based on verbal agreements can delay a closing, as well as cause friction.
- Pre-closing Walk-through. You and the Realtor should conduct a “pre-closing walk-through inspection” which you will make a few days before the closing.
PROCESSING THE SALE
After you have signed contracts, we stay with you every step of the way. You can count on your James W. Smith Realtor to follow through with any details in processing your real estate purchase. We will:
- Ensure that the earnest money is deposited in accordance with the terms of your contract.
- Oversee the lender to be sure the funds are available as soon as possible – loan approval can take from 4 to 8 weeks.
- Coordinate all necessary pre-closing inspections.
- Remind you about the required homeowners insurance policy
- Provide you with pertinent utility phone numbers.
- Coordinate with the closing attorney for closing fees, lender instructions and title search.
- Oversee the closing – buyer, seller, lender and Realtors involved in the transaction.
The house keys are passes. You are now the proud owner! Congratulations! The James W. Smith Real Estate Company team does not stop here. We want to be sure that you are comfortable in your new home. When you are ready to sell, James W. Smith Real Estate wants to keep you as a customer and valued friend. We hope you will love your new home and the Pawleys Island/Litchfield Beaches area!
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