In this weeks Fiduciary Friday, Joe talks about the offer process when buying a house. After months of looking, you’ve found your dream house, but where do you go from here? For more information on the offer process click here.
There are three major aspects to the offer process. These include the negotiations, the conditions and going from pending to sold. There are major components to each of these steps, which Joe outlines.
Negotiations When Making An Offer
There are five major components to the negotiations process.
- Price- The amount of money you are offering to pay for the property.
- Closing Date- The date in which you want to move into the home or take possession of the property.
- Conditions- Wants and needs you require, as the buyer in order to purchase the home or property.
- Deposit- Amount of money that will be put down, and held in trust by the listing brokerage, that will go towards the downpayment of the home. Don’t understand the difference between a deposit and down payment? Click here and Joe explains.
- Chattels Included- an item of tangible movable or immovable property except real estate and things (such as buildings) connected with real property. Examples of chattels can be appliances, fixtures and window coverings or even farm equipment.
Conditional Period During The Offer Process
Typically the conditional period lasts 7-14 days. In this time, certain criteria must be met in order for the sale of the house to finalize. During the conditional period, financing and insurance must be arranged. Also, its strongly suggested that a home inspection be arranged and conducted during this time. It is important that no major purchases are made on credit during this period. Want to know why? Click here to ask Joe!
Pending To Closing Period During The Offer Process
Once all the conditions have been met by both parties, the offer goes from Conditional to Pending. During this period, one last walk through is scheduled to view the property. This usually takes place one day before closing. The reason for this is to make sure the home is in the same condition it was, when you made the offer. If the home is not in the same condition, the involvement of your lawyer is required. For example, the home you are purchasing has been vacant for a period of time and a storm has caused damage to the property.
After the negotiation period, conditional period and the pending period have all gone through, the sale is considered closed. The home is yours!
Interested in purchasing a property? Click here to check out Joe’s latest listings.