Special offer

You've Found Your Home, Now What?

By
Real Estate Agent with Whalen Realty Group,LLC RB14040374

Congratulations, you have found the home you want.  Now what?

Your next step is to write a purchase agreement.

 Writing a Purchase Agreement

 

When you select your new home, your REALTOR® will communicate with the selling party by means of a written offer.  When the offer is accepted by both you, as the buyer, and the seller, it becomes a legal contract.  In Indiana, we use contract forms approved by the Indiana Real Estate Commission.  The following information is required when filling-out the purchase contract.

Purchase Price:  This is the amount of money that you are offering to pay for the property.

Improvements & Fixtures:  These are items that normally remain with the home and are pre-printed into the purchase agreement.  Your agent will write in other items that you want included or excluded.

Method of Payment:  This states the type of financing and the appropriate time needed to obtain financing.

Closing Date:  This is the day we finalize paperwork, and the deed of the property is transferred into your name!  If you will be using equity from the sale of your current home, the closing dates of each transaction can be easily set.  Other factors affecting the date of closing are the length of time the lender needs to approve your loan and the date the seller agrees to give possession.

Possession:  The date you get the keys to the home & can move in.

Condition Disclosure:  The seller is required by law to fill out a Seller's Disclosure Form, stating whether there are any major problems with the home.  If the home was built prior to 1978, Lead-Based Paint Certification and Acknowledgement Form is also required.  You must receive and sign copies of these forms.  The sellers must reconfirm the Disclosure Form at closing.

Inspections:  You can reserve the right to have the property inspected, or accept the property based upon your own examination.  It is highly recommended that you have a professional home inspection.

Taxes:  You can ask the seller for either a proration of the taxes through the date of closing, or for a specific installment to be credited at closing.

Survey:  Many types of mortgages require a survey location report.  However, if you have questions about the boundary lines, or are planning on making physical changes to the property (additions, fencing, etc.), you may want to get a staked survey.  This survey would be a substantially cost for you.

Earnest Money:  This money represents your sincerity in purchasing the home.  The amount is negotiable (typically, 1% of the purchase price) and is expected at the time the offer is made.  A personal check will be acceptable and is made payable to the listing company.  The amount deposited is held by the listing company until time of closing.  The money is refundable if the offer is not accepted, financing is not obtained, or the home inspection is not satisfactory.  A mutual release must be signed by all parties before the listing office releases the earnest money.

Buyer's Name:  Your name should appear on the purchase agreement as you wish to take title to the property.

Signature:  In Indiana, once an offer is signed by ALL PARTIES it is considered accepted and becomes a legal and binding contract.

 

 

 

 

Counter Offer

 

The purpose of the counter offer is to change the terms of the purchase agreement, which are unacceptable to the parties of the contract.

After a purchase agreement is delivered, the sellers have 3 options:

•¨       Accept the offer as written

•¨       Reject the offer outright

•¨       Write a counter offer with terms that are acceptable

After each counter offer, the other parties have the same 3 options.

*** Remember, successful negotiations are accomplished by a few key points.

When all parties agree on the terms of a contract and have the purchase agreement or counter offer(s) signed, the contract is then in full force and binding upon all parties to the agreement.

Remember, if you or anyone you know is looking to buy, build or sell I would love to be of service.  For more information feel free to contact Dawn Whalen @ www.dawnwhalen.com

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