Buying a home in Greenwood Village CO - Dissecting the offer
You are buy
ing a home in Greenwood Village CO and you have found the house you want to call home. You are ready to proceed with an offer. So what is this offer? What goes into it. It is 11 to 16 pages long (depending on what template or software is used). Let's look into the contract a little bit more.
This is part 5 of 7 part series about Buying a home in Greenwood Village Colorado
The offer - Contract to Buy and Sell Real Estate
This Contract to buy and sell Real Estate is a Colorado Real Estate Commission approved form and one of the documents that must be used. It is our job to know this document/contract even in our sleep. Instead of going through the whole contract which is more difficult on paper than face-2-face - we'll highlight some key points.
Information needed from you for the offer
1.Your name. Full name or they way that you want to take title. e.g. John B. Smith. or John Benjamin Smith.
2. Your financing - meaning, are you paying cash, putting a certain % as a down payment, what type of a loan you will be using (FHA, VA, conventional etc.) - this is also where the lender pre-qualification letter or proof of funds comes into the picture (discussed in part 1)
3. The amount of money you are going to put down as Ernest Money - the amount of Ernest Money the seller is requesting is disclosed ahead of time via MLS, but the amount you want to use may be more or less, or the same, depending on the situation.
4. Dates - when would you like to close on the home - or - when would you like to move? Typically around here the average time is from 30-45 days. Lately due to lender/under writing/appraisal etc. issues the time has been on the longer side.
DATES and DEADLINES
One of the important sections of the contract is right on the front page or two - the section of Dates and Deadlines. By the dates used on this contract many things need to happen, including inspection, appraisal, survey (if applicable), title, insurance etc. Your agent - us - sets those dates accordingly. What that means is that depending on the situation (again) the time lines used may vary. e.g. some lenders required certain things (like inspection etc.) to happen within so many days of mutual agreement.
INCLUSIONS/EXCLUSIONS
These sections specify which items are included with or excluded from the purchase. Often these are refrigerator, washer, dryer, window coverings, ceiling fans etc. Often this can also create quite a battle between buyers and sellers. Therefore carefully filling in this section is critical.
PURCHASE PRICE AND TERMS
I would bet this is a section most agents immediately look at when they receive an offer. How much is the offer for? and what are the financing terms? This section is where you specify how much you are offering to buy the home for along with the terms you are planning to use (cash, loan...).
There are so many more sections, and it can sound a bit overwhelming - ok, maybe a little more than a bit - this is where we go through the contract with you. Step by Step. Each portion has to be filled in according to the situation and the contract has to be initialed and signed by you - the buyer, and by us - your agent (and hopefully by seller and listing agent).
Once that is done - the offer/contract along with copy of the Ernest Money and lender letter are sent over (e-mailed, faxed...) to the listing agent. The listing agent then presents to offer to the seller.
We must throw in that we are not attorneys or tax professionals - neither do we play either on TV. We do not and can not give legal or tax advice. So, as the top of the Contract to Buy and Sell Real Estate document says you seek legal and tax or other counsel before signing the offer as this contract has legal consequences.
This is Part 5 of 7 part series of buying a home in Greenwood Village. Below you will find links to the two previous parts.
Coming Soon - Part 6 - A counter proposal
Part 1 - Buyer's Checklist / Wishlist
Part 2 - Buying with cash or getting a loan?
Part 3 - Ready, Set, Go - Looking at Homes
Part 4 - Let's write an offer!
Part 5 - Dissecting the offer
Brian and Rita Burke
Kenna Real Estate
303.995.4220 Office ext 701
Homes@kennarealestate.com
Kenna Real Estate Website Multiple Search Tools to find your new home!
Disclaimer: Kenna Real Estate does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
Copyright 2009.© Kenna Real Estate. Rita Burke. All Rights Reserved. Aug 20th 2009. "Buying a home in Greenwood Village CO - Dissecting the Offer"
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