Writing The Offer To Purchase

When you are serious about pursuing the purchase of a specific property, this is the time to think carefully about what you want and what you can realistically afford. If your offer is accepted, it becomes a legally binding contract. You need to make certain you do not include anything in the offer that you are not totally comfortable with completing – your agent will guide you through the entire process and prepare the offer. Offers usually include items such as:

PROPOSED PURCHASE PRICE: Remember, the seller may counter-offer with a higher price – consider that when you decide on your proposed purchase price.

CONCESSIONS: This includes things you would like the seller to help pay for – such as closing costs.

CONVEYANCES: This covers any personal property to be included with the sale – like the washer and dryer, or the refrigerator, or the patio furniture.

EARNEST MONEY DEPOSIT: The “earnest money” is a deposit you offer to show that you are serious about purchasing the home. The earnest money is usually held in your agent’s company’s trust account (which is a non-interest bearing account) and deposited into that account upon full acceptance of the offer by all parties. This deposit is part of your settlement costs at closing. If you fail to meet the terms of the contract, your agent cannot return the money to you without a full release by both buyer and seller or other legal direction. In some instances, if you fail to perform, you may lose this deposit.

HOME INSPECTION CONTINGENCIES: Be prepared if the home inspection report shows major problems (which sometimes happens). Know what you will ask the seller repair or replace in order to purchase the home or what type of reduction in price to account for the repairs and/or replacements who will do yourself after you purchase the home.

ACCEPTANCE: This refers to the period of time (usually how many days) the seller has to respond to your offer before it is no longer binding.

MEDIATION AND ARBITRATION: These are legal methods for handling contract disagreements between you and the seller. Realtors are not attorneys, so we do not provide legal advice.

WHEN THE OFFER BECOMES A CONTRACT: Once the seller accepts your offer, the offer becomes a contract. Your contract will include the following:

LEGAL DESCRIPTION: This would include the address of the property, the tax identification number and parcel number, the subdivision, city, county, and state, along with any additional information that may be a part of the county record for the property.

SELLING PRICE AND DEPOSIT: This is the price that both seller and purchaser have agreed upon, as well as the amount of earnest money the buyer will deposit when the offer is executed and agreed to by all parties.

MORTGAGE CONTINGENCY: This contingency protects you by stating that the sale depends on a lender approving you for a specific mortgage, rate, and term.

CLOSING DATE: The closing date can be several weeks to several months from the acceptance date to meet the needs of both seller, buyer, and the lender preparing the settlement package.

HOME INSPECTION: If you have the contract contingent upon the completion of a home inspection (which can include a pest inspection and/or radon inspection), this will include a date by which the inspection must be completed and what will happen if the inspection report identifies any problems.

POSSESSION DATE: This is the day you are given occupancy of the property. In many cases, it is the date of closing. If it is not at closing, it can be any number of days after the closing (usually no more than thirty).

PROPERTY INSURANCE: This details the home insurance policy that will cover the property until the closing date. This is usually the seller’s policy with the buyer’s policy taking effect upon the date of closing.

PROPERTY DISCLOSURES / LEAD BASE PAINT DISCLOSURES (if applicable): This relates to State-mandated forms that includes legal notification of any information regarding the property or any issues that a seller may have (or currently has) must be disclosed. The lead base paint disclosure form relates to homes constructed prior to 1978 and lead was used in interior paint.

Your Loss Realty Group agent will explain any and all of these items as you work through the home-buying and/or home-selling process.

How Much Can I Afford?

There are two major factors that will determine how much of a house you can afford:

• The amount you are qualified to borrow; and,
• The size of your down payment.

Lenders take into consideration your gross monthly income and your existing debt payments when determining how much you can afford to pay each month. This number is called your “debt-to-ratio income” (DTI).

If you have an existing home, also factor in these considerations into your new home purchase:

• The equity in your current home.
• Selling costs (Example: Repairs or updating your current home may need)
• Closing costs (Example: Title Work; Conveyance Fees – costs associated with the actual closing of the property and transfer to the new Homeowner).
• The savings you can spend – applied to the new home purchase.

The best way to begin the home-buying process is to get pre-qualified (or pre-approved) with the lender of your choice. It’s quick, convenient, and you can complete the process on-line. Sellers in today’s market always want to see that a prospective Buyer of their home is pre-qualified or pre-approved (this shows them that you have the financial ability to purchase their home and that ability has been verified by a lender).

The following are the basic items a lender may require at the time you make a formal application for a mortgage loan:

• A copy of your Contract of Sale / Purchase Agreement or Building Agreement (complete with the address and legal description of the property).
• W-2 forms for the past two (2) years an original pay stubs for at least the last thirty (30) days showing year-to-date income or a statement from your employer confirming your earnings for the previous two (2) years.
• If self-employed, business and personal Federal Tax Returns for the past two (2) years plus a current financial statement.
• A ninety (90) day history of savings; checking; and/or brokerage accounts.
• Verification of twelve (12) months of rental; mortgage; or land contract payments.

If you are a new home buyer, be sure to ask your lender about FHA or VA payment assistance programs and as well as conventional loan mortgages. Again, getting pre-approved for a home loan is highly recommended so that you are searching for a property in the appropriate price range. Most Sellers will require a pre-approval letter from the Buyer’s lender before they will accept an Offer and sign a Purchase Agreement.

House Hunting Made Easy

People Approach The Task Of Finding Their Next Home In Different Ways.

Some jump in the car and drive different neighborhoods looking for “For Sale” signs; some will search the internet looking for the interesting properties; and some will call a real estate office or a realtor they know or have been referred to – some may even do all three. If you are in the market for a home, the following are some ideas that may assist you in your search.

Find The Right Agent For You:

Because we are all different individuals, you should try and work with a real estate agent who has the knowledge and experience to suit your personality. Don’t work with more than one agent when you are house-hunting. You may feel that working with multiple agents may help you find a home more quickly, however, it doesn’t work that way. Because real estate agents are paid on a commission basis, an agent who knows that he or she has your exclusive loyalty will be more motivated to stick with you until you have found the right property and you are satisfied.

How Much Of A Home Can I Afford:

One of the most painful experiences for a potential home buyer is to tour homes that are out of their price range. You may fall in love with a certain home only to discover that you are not financially capable of completing the purchase. Your agent can recommend a mortgage professional to assist you in reviewing your finances and help you determine how much of a home you can afford. This one step will allow the home search process to start out in the right direction.

Your Needs And Tastes And Communicating Those To Your Realtor:

A good agent is a great listener. Many buyers visit too many homes before their final selection is made. This is often caused by a communication gap between the buyer and the agent. It is difficult for a realtor to have an understanding of your tastes, the type of home you want, the features you are looking for and so on when they rely on verbal communication. One way to help your agent understand what you are looking for is to have them see your current home. You can then point out what features you like about your current home, what you dislike, and what you want in a new home. Communicate as much as you can to your agent so he or she can help you find a property that meets all of your requirements.

Home Buying Do’s and Don’ts

DO take the time to analyze the important features you really want in a home and hold on until you find them. If you need an eating area in your next kitchen, be sure you get it in the home you decide to purchase.

DON’T purchase a home that is considerably more expensive than other homes in the neighborhood. The surrounding homes will drag your value down rather than help it appreciate.

DO investigate the quality of the local school system. Whether you have school age children or not, school systems do have a dramatic effect on the value of residential real estate.

DON’T be too quick to purchase a home on a busy street or one that adjoins or is located in close proximity to non-residential structures. The reason that you may be able to purchase one of these at a good price is the same reason that a subsequent buyer will expect a price concession from you.

DO study the layout / floor plan to be sure that it has the number of bedrooms and bathrooms that are normally desired in this price range. Will the traffic pattern be livable on a daily basis.

DON’T purchase a home because of the decor. Does the property also have the features and amenities that you want. You want to look past the decor and notice the important essentials that are permanent features of the home.

DO investigate the ongoing costs of owning this particular home including property taxes and average utility costs. You may be able to purchase the home, but unable to maintain living there over the long run.

DO SEEK THE HELP OF A PROFESSIONAL REALTOR. Contact Loss Realty Group today for all of your real estate needs.

Relocating? We Can Help!

The Loss Realty Group has a national referral network with cooperating brokers in all US markets.

Incoming transferees or people moving to this area are in the comfortable position of knowing that we have received the necessary information pertinent to their move, including their purchasing parameters. When they arrive here, we are ready to go to work. Their time is limited and they need a local expert with special relocation training and experience.

If you are a Seller, you will benefit from our incoming transferees. If you are relocating out of this area, we can initiate a relationship between you and our corresponding broker in your destination area.

We have a “Corporate Relocation Team” who work specifically to maintain relationships with corporations, relocation service companies, and our corresponding brokers nationwide. Corporate transferees represent a large portion of our business. We have been trained to handle the special needs of out-of-town buyers with our experience, patience, and sensitivity to their requirements and family situation.

Our “Relocation Sales Team” is comprised of experienced “top producers” – all selling millions of dollars of real estate annually. For more information, please contact:

Our “Relocation Sales Team” is comprised of experienced “top producers” – all selling millions of dollars of real estate annually. For more information, please contact:

Debbie Ross
419-725-1814
1-888-567-7420 (Toll Free)
DebbieRoss@LossRealtyGroup.com.

We look forward to speaking with you and assisting with your next move.

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Finding A Buyer’s Agent

MANY PEOPLE SOLICIT THE HELP FROM A REAL ESTATE AGENT to assist them in finding a home that meets their criteria. A professional real estate agent can look for homes that meet your needs and financial circumstances and they can help you in narrowing down your choices. A real estate agent can also help you stay focused on those homes that you can afford. When looking for a real estate professional, as a buyer, you should look for a buyer’s agent. A buyer’s agent solely represents your interest as a purchaser. In most situations the Seller pays your Agent’s fee at the closing, so there is no cost to you.

HOW TO FIND A REAL ESTATE AGENT: Ask your family and friends for a referral. Attend open houses and speak with the agent who is holding the house open. You’ll want to choose an agent who makes you feel comfortable, who can provide the knowledge and services you need, and who will be respectful of your housing budget. Our agents at Loss Realty Group have the experience and knowledge to put you and your family’s needs first. We are there every step of the way.

WHAT SERVICES DO REAL ESTATE AGENTS OFFER: Real Estate Agents can help you find the type of home, land site, or investment property that you desire. Your Agent will set up a customized property search for you to start. When you are ready to make an offer on a property, your Agent will provide comparable active, pending, and sold properties to help you with your offer to purchase price strategy. Your agent will also handle all of the negotiations on your behalf. If you are planning to get a mortgage, our agent can also refer you to several different lending sources for your mortgage. Your lender will then provide you with a pre-approval letter, handle your pre-qualification, and assist you in securing mortgage financing. There is always strength in submitting an offer with your pre-approval letter or proof of funds if you are cash buyer, which shows a seller you are ready and able to perform on a purchase of their property.

QUESTIONS FOR YOUR REALTOR: Before working with a specific agent, you may want to learn more about the Agent’s sales production and any areas of specialization. You may want to ask if the Agent is a full-time or part-time agent and the number years they have been in the real estate business. You may want to know basic information regarding the Company and Agent, and ask the agent for some references from satisfied customers. The right Agent can make the buying process a smooth and stress-free experience. Loss Realty Group prides itself on being associated with professional Agents that are ready to go to work for you.