elitere | Feb. 17, 2023
Before looking for a home, it is super important that you have confirmation financing is in place, whether that be a pre-approval for a mortgage or proof of funds if purchasing with cash. When the time comes to place an offer; we also want to do another quick check again before submitting the offer to ensure nothing has changed with respect to your finances.
We will discuss your offer price and strategy based on other current market and comparable properties that have sold/currently for sale, and adjust the price (more/less) for various features/condition differences.
Chattels Included/Features Excluded:
You want to know EXACTLY what is included/excluded in the purchase price, as some items in homes are not always obvious. Are the sellers including the pizza oven in the backyard or the outdoor TV? Are they including the pool equipment and covers? Are they leaving their shed? Are TV brackets and window coverings staying behind? Do you love the dining room table and want to write it into the deal? Is the Sonos Soundbar, subwoofer, and receiver included, or does the seller wish to take? Knowing exactly what you are getting included with your purchase will help to avoid disappointment and potential issues on closing.
Are there any rental or rent-to-own items in the home? If so, what are those items? The hot water heater, water softener, or furnace? Knowing what is rented/rent to-own in a home you are looking to purchase, and understanding all potential associated monthly fees, costs, terms, buyout, etc. is important. Review necessary contracts, if applicable, before offering and assuming on close.
Now that the market has changed, we are seeing the introduction of conditions back into offers. A condition is an action documented in the agreement, such as a financing or home inspection condition, whereby a buyer is permitted to complete their due diligence and is required to waive, amend, fulfill, or mutually release such a condition by an agreed-upon time before the sale becomes firm and binding.
Clauses are requirements a Buyer or Seller must agree to as part of the transaction. Depending on the clause and the wording, it might be something a Seller (for example) might undertake to do prior to the closing date of the sale. For example, the seller might be required to provide proof that a septic tank has been pumped, or show that the well water is safe for drinking by a certain date prior to the transaction close. It could also be something relevant to the closing date of the sale: “The Seller agrees to provide the Property with the Exterior and Interior of the Property in a Clean, and Broom Swept condition”. Or something that survives the closing date of the sale (which means it remains in effect after the closing date), such as: “The Seller warrants that, to the best of his knowledge and belief, the property does not contain any hidden defects…”. If the clauses are not completed or misrepresented, there could be repercussions in place.
Once your offer is accepted, you will need to put down a deposit, typically within 24 hours of acceptance of your offer. The deposit amount can vary, and is usually dependent on the purchase price amount-the higher the home price, the higher the deposit. Ensure you know this amount of the deposit and the timeframe in which it is required before you place and submit your offer. This deposit is then held in trust by the listing brokerage until close (in most of the cases), and goes towards your down payment at closing.