After all the searching, loan applications, seeing homes, visiting Open Houses the moment arrives when you know this is the home you want to buy. It is an exciting time and it can also be a stressful time.
But, that is where working with an experienced Realtor brings a multitude of benefits. From price to terms, contingencies, settlement date a Realtor can give you advice. We do not make the decision for you, that is your job, but we can give you the confidence to make the right decision for you.
So, let's explain the process of making an offer. In Pennsylvania we use a standard Agreement of Sale form, this is pre-printed with spaces for certain information. The agreement will include the parties to the transaction, the sellers, the buyers and their mailing addresses, the details about the property being purchased, the address, the municipality, school district, County, and the tax id of the property. Below this are the agents and brokerages representing both the buyers and the sellers with their contact details. This all appears on the first page of the agreement, so it is easy to find.
The second page begins with the date the agreement is being written, the purchase price being offered, and what deposits are being made and when. How do you determine the price to offer? Well as your agent I would provide you with comparative sales to review, and also if it has taken some time to find the house ask you to consider all the homes you have seen. Most likely you will have a good idea at this stage about price. However, when the market is leaning towards being a sellers market we can advise you to potentially offer over the asking price. You decide by how much.
Pennsylvania is a time is of the essence state, which means things need to be completed when they are scheduled as per the agreement, unless they are extended in writing and signed by both parties to not meet a deadline is the same as waiving it, or possibly being in breach of contract.
Next the agreement lays out any seller concessions. These may be towards closing costs or if you the buyer are asking the seller to contribute towards paying your buyer agent if that has been determined that the listing broker is not offering any buyer agent compensation.
Next is the settlement date, usually your agent will have talked with the listing agent to determine what date the seller might prefer. Sometimes a seller might want a quick settlement other times they may want a longer settlement date.
Further down are listed any inclusions and exclusions, again these may be in the MLS listing, or your agent has determined from conversation with the listing agent. Certain things are automatically included and these are listed in the agreement of sale, such as fixtures and fittings, stoves, ovens, dishwashers but not refrigerators or washers and dryers. These are often added as part of the offer.
Then terms of any mortgage being applied for are added and from whom it is being obtained from.
There is a section for buyer due diligence which includes a variety of inspection options, these can be elected or waived. In a strong seller market, many buyers waive all contingencies. We prefer buyers to not waive contingencies, but sometimes it is the only way you may get your offer accepted. As part of this is the dates when these inspections will be completed. If you can get the inspections done quickly it may persuade a seller to accept your offer over one where the inspections are going to take much longer.
At the end of the agreement of sale there is space to include other contingencies, such as Sale and Settlement of other Property. In a buyers market a seller may be willing to do this but often sellers prefer not to accept an offer with this type of contingency in it.
Again, you make the decisions on all the choices, but I am here to help you make those decisions by giving you advice and letting you know the pros and cons of each choice, not to make them for you.
If you are getting ready to look for a home let's schedule a time to meet, sit down and discuss how I can help you achieve your goal. Call Nick Vandekar Selling the Main Line and Chester County with Realty ONE Group Advocates, office 484-237-2055, cell or text 610-203-4543, Nick@VandekarTeam.com.
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