Like everything else in this world, the process of making an offer on a property and getting it accepted by the Seller, is step by step.
So here we go:
For the Buyer, an Offer to Purchase document is made out by your Realtor and is sent to the Listing Agent along with your pre-approval letter from your bank or mortgage broker. The Offer to Purchase, has your name, address, price offered, and perhaps an attorney that you might use. Terms, such as how much you are putting down, 5%, 10%, 20%. The Offer to Purchase is presented to the Seller.
Three things can happen after submitting an offer; Seller accepts offer, Seller rejects offer, Seller submits a counter offer.
Once the Seller & Buyer agree upon a price, it is extremely important for the Buyer to hire a professional engineering home inspection company to go through the property and check to make sure that all is well with the roof, boiler, structure of the property, terminates, radon etc…
For the Seller, issues can and do pop up all the time during the home inspection. If the following 5 issues are found it is on the Seller to repair these issues:
1. Foundation damage
2. Roof leaks
3. Radon gas presence
4. Boiler issues (not working properly)
5. Termites and the damage caused by them
If any or all of these issues are found, the Buyer has the right to ask the Seller to fix them. It is required that these issues are resolved promptly to help secure a mortgage. Fixing damage caused by termites is included in the process of eliminating the termite problem. Depending on what needs to be repaired in some circumstances, the Buyer can ask the Seller for a credit, and the Buyer will make the repairs on their own once they move in.
Once the above is completed, a Memorandum of Agreement goes out to both Buyer & Seller attorneys. This document contains all the information that the Seller’s attorney needs in order to send out a Contract of Sale to the Buyer’s attorney.
Buyer goes over the Contract of Sale with their attorney, signs it and submits their down payment check. It then goes to the Seller’s attorney for the Seller to sign as well. Your down payment check is put into the Seller’s attorney Escrow Bank Account for safe keeping. Buyer goes for their mortgage, bank comes in to appraise the property, title search is done on the property, buyer obtains homeowner’s insurance and then you close on the property.
Congratulations to the Buyer on their new home. Congratulations to Seller on their new destination.
Carlo Minchillo, YCL Real Estate Salesperson