First-time Homebuyers Part 2
You found the home you want! You and your Realtor® will go over market stats and look at any homes close by that have sold recently. You will also look at what’s actively listed close by. This will all help you in determining a good price to offer. Your Realtor® will guide you through the process, but at the end of the day, it is your decision on what to offer. You will also come up with an amount to put down as a deposit. This deposit is not your down-payment but acts as earnest money. The deposit helps show the seller how serious you are in purchasing the home. Should you try and back out or collapse the deal due to any other reason other than your ‘subjects’ the seller could, potentially, keep your deposit.
Once you have a price in mind, your Realtor® will write up legally binding contract to present to the listing Realtor®. In this legally binding contract is where you will include your ‘subjects’, or condition precedents. These will include things like, subject to financing, home inspection, house insurance, title review, Property Disclosure Statement review, and review of all city documents on file to name a few standard ones.
What that the agent does next, in my opinion, is one of the most important part of our jobs. Negotiating. I take negotiating very seriously, and personally take classes on negotiating. I am a Certified Negotiation Expert (CNE®) through the Real Estate Negotiation Institute. Your Realtor® will negotiate the best possible terms, timing and price on your behalf. A good negotiation isn’t a ‘I win, you loose’, it should be a ‘win win’ for both sides of the transaction. Where everyone can walk away feeling as though they got what they wanted out of the negotiations.
Now that you have an accepted offer, its time to deal with those ‘subjects’. They need to be removed by you, or else the contract can not proceed. You usually have anywhere from 10-14 days to remove them. Your Realtor® will help you through this process. They will have a list of home inspectors and insurance providers in your area for you to choose form. They will ensure all document are sent to your mortgage specialist, book your home inspection for you and stay in constant contact with the listing Realtor® to ensure everything goes smoothly.
Subjects are removed and you have a firm and binding deal! Your Realtor® will ensure all documents are sent to the notary/lawyer of your choice. Depending on how far away the closing/possession is, you could be waiting 30-60 days before you get the keys to your new home. Now is the time to start setting up accounts for your services such as natural gas, electricity, water, garbage removal and TV to name a few. If you’re using movers, schedule them as well. 30 days before possession is time to get your insurance binder, a form stating the insurance broker will insure your home as of possession date. Your notary/lawyer will need this when you go in for your appointment with them. Your notary/lawyer usually calls to set up an appointment in the week leading up to closing/possession. This is where you will bring in your down-payment, in the form of a money order, and all other required identification. They will tell you exactly what you need to bring when scheduling the appointment.
MOVING DAY! Move in and enjoy your new home!!
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