(Read more at the blog!)
Route 66 Realtors welcomes anyone who is in the market to purchase a home! Stop by the office and speak to one of our agents today!
The Purchase Contract (Read more at the blog!)
Most real estate agents use standard pre-printed purchase contract forms, filling in the details specific to your purchase terms. These legally binding documents are used to:
1. Set forth the terms of the sale
2. Establish the rights and obligations of the parties involved
3. Specify what actions will be taken in order to close the sale, and
4. Establish time frames for those steps to be completed
While most buyers are usually fully aware of terms regarding price, closing date, and financial arrangements, there is a tendency to overlook much of the rest of the contract. However, since all the contract terms will be binding, it is important to understand what you are agreeing to before signing the contract. Not doing so can be a costly mistake, especially if there are problems or difficulties in the transaction.
WHEN AN OFFER BECOMES A CONTRACT
A purchase contract is created when there is a “meeting of the minds” on all terms—when you and the seller have come to agreement and signed the offer form along with any counter-offers and addenda. Real estate contracts must be in writing; verbal contracts to purchase real estate cannot be enforced.
Some of the items that you may be agreeing to may include:
• What personal property will be included or excluded from the sale.
• Who will pay for required repairs or retrofits.
• What the seller’s disclosure obligations will be.
• What the seller’s obligation to maintain the property will be.
• What the seller is warranting about the property.
• What the buyer’s inspection rights will be.
• What will happen in the event either party does not comply with the contract.
• Whether or not the buyer can get out of the contract upon an attorney review and/or other contingencies.
• What will the parties’ legal rights and attorney fee provisions be in the event of a breach of contract.
DO YOUR HOMEWORK IN ADVANCE
It is highly recommended that you read and review the pre-printed forms with your buyer’s representative before you write and sign a purchase offer. That way, once you are ready to present a bona-fide offer, your focus will be on the primary issues of price, terms, and closing date.
Reviewing and understanding the purchase contract form ahead of time can also help you strengthen your negotiating position, protect yourself from incurring unnecessary costs or problems, and gain a better understanding of what you will need to do to conclude the sale.
1. Set forth the terms of the sale
2. Establish the rights and obligations of the parties involved
3. Specify what actions will be taken in order to close the sale, and
4. Establish time frames for those steps to be completed
While most buyers are usually fully aware of terms regarding price, closing date, and financial arrangements, there is a tendency to overlook much of the rest of the contract. However, since all the contract terms will be binding, it is important to understand what you are agreeing to before signing the contract. Not doing so can be a costly mistake, especially if there are problems or difficulties in the transaction.
WHEN AN OFFER BECOMES A CONTRACT
A purchase contract is created when there is a “meeting of the minds” on all terms—when you and the seller have come to agreement and signed the offer form along with any counter-offers and addenda. Real estate contracts must be in writing; verbal contracts to purchase real estate cannot be enforced.
Some of the items that you may be agreeing to may include:
• What personal property will be included or excluded from the sale.
• Who will pay for required repairs or retrofits.
• What the seller’s disclosure obligations will be.
• What the seller’s obligation to maintain the property will be.
• What the seller is warranting about the property.
• What the buyer’s inspection rights will be.
• What will happen in the event either party does not comply with the contract.
• Whether or not the buyer can get out of the contract upon an attorney review and/or other contingencies.
• What will the parties’ legal rights and attorney fee provisions be in the event of a breach of contract.
DO YOUR HOMEWORK IN ADVANCE
It is highly recommended that you read and review the pre-printed forms with your buyer’s representative before you write and sign a purchase offer. That way, once you are ready to present a bona-fide offer, your focus will be on the primary issues of price, terms, and closing date.
Reviewing and understanding the purchase contract form ahead of time can also help you strengthen your negotiating position, protect yourself from incurring unnecessary costs or problems, and gain a better understanding of what you will need to do to conclude the sale.
Closing Costs (Read more at the blog!)
Closing costs are simply the fees associated with 1) purchasing a home, 2) borrowing money, and 3) preparing paperwork to finalize the sale. Your total closing costs will vary depending on where your new home is located, what type of property you are buying, and the price of your home and the complexity of the transaction.
It is extremely important that you work closely with your buyer’s representative in the early stages of your home search to estimate what these costs could be, since closing costs can easily represent thousands of dollars.
The main categories are:
DISCOUNT POINTS TO BUY DOWN THE MORTGAGE
If you want to reduce the ongoing cost of your mortgage over the life of the loan, you’ll want to consider this optional fee. Amounts can vary significantly, from 0.5 to 3 points on the total mortgage amount. This is a one-time charge that is fully deductible as mortgage interest.
COSTS FOR ORIGINATING THE MORTGAGE
This generally includes a variety of fees such as the loan origination fee, the appraisal fee and the cost of credit reports. Other related closing fees may include hazard and mortgage insurance, and interest accrued on the mortgage between closing date and the end of the month.
TAXES AND OTHER LOCAL FEES
Charges will vary according to local government requirements. Some may demand that property taxes be pro-rated according to when you officially own your home. You may also be required to pay personal property taxes, homeowner’s association dues, and other assessments that are specific to the area that you are moving into.
DOCUMENTATION COSTS
You will have to pay for any research involving public records and title history for your new property. This insures that the title is unencumbered by other ownership claims or liens and can be delivered to you at closing. Other costs include recording and transfer fees, which cover legally recording the deed to your name.
It is extremely important that you work closely with your buyer’s representative in the early stages of your home search to estimate what these costs could be, since closing costs can easily represent thousands of dollars.
The main categories are:
DISCOUNT POINTS TO BUY DOWN THE MORTGAGE
If you want to reduce the ongoing cost of your mortgage over the life of the loan, you’ll want to consider this optional fee. Amounts can vary significantly, from 0.5 to 3 points on the total mortgage amount. This is a one-time charge that is fully deductible as mortgage interest.
COSTS FOR ORIGINATING THE MORTGAGE
This generally includes a variety of fees such as the loan origination fee, the appraisal fee and the cost of credit reports. Other related closing fees may include hazard and mortgage insurance, and interest accrued on the mortgage between closing date and the end of the month.
TAXES AND OTHER LOCAL FEES
Charges will vary according to local government requirements. Some may demand that property taxes be pro-rated according to when you officially own your home. You may also be required to pay personal property taxes, homeowner’s association dues, and other assessments that are specific to the area that you are moving into.
DOCUMENTATION COSTS
You will have to pay for any research involving public records and title history for your new property. This insures that the title is unencumbered by other ownership claims or liens and can be delivered to you at closing. Other costs include recording and transfer fees, which cover legally recording the deed to your name.
(Read more at the blog!)
1. Disassociate Yourself With Your Home.
Say to yourself, “This is not my home; it is a house—a product to be sold much like a box of cereal on the grocery store shelf. Make the mental decision to “let go” of your emotions and focus on the fact that soon this house will no longer be yours. Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
Say goodbye to every room. Don’t look backwards—look toward the future.
2. De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can’t see past personal artifacts, and you don’t want them to be distracted. You want buyers to imagine their own photos on the walls, and they can’t do that if yours are there! You don’t want to make any buyer ask, “I wonder what kind of people live in this home?” You want buyers to say, “I can see myself living here.”
3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven’t used it in over a year, you probably don’t need it.
· If you don’t need it, why not donate it or throw it away?
· Remove all books from bookcases.
· Pack up those knickknacks.
· Clean off everything on kitchen counters.
· Put essential items used daily in a small box that can be stored in a closet when not in use.
· Think of this process as a head-start on the packing you will eventually need to do anyway.
4. Rearrange Bedroom Closets and Kitchen Cabinets.
Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
· Neatly stack dishes.
· Turn coffee cup handles facing the same way.
· Hang shirts together, buttoned and facing the same direction.
· Line up shoes.
5. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around. You don’t want buyers scratching their heads and saying, “What is this room used for?”
6. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won’t want it. Once you tell a buyer she can’t have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
7. Make Minor Repairs.
· Replace cracked floor or counter tiles.
· Patch holes in walls.
· Fix leaky faucets.
· Fix doors that don’t close properly and kitchen drawers that jam.
· Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don’t give buyers any reason to remember your home as “the house with the orange bathroom.”)
· Replace burned-out light bulbs.
· If you’ve considered replacing a worn bedspread, do so now!
8. Make the House Sparkle!
· Wash windows inside and out.
· Rent a pressure washer and spray down sidewalks and exterior.
· Clean out cobwebs.
· Re-caulk tubs, showers and sinks.
· Polish chrome faucets and mirrors.
· Clean out the refrigerator.
· Vacuum daily.
· Wax floors.
· Dust furniture, ceiling fan blades and light fixtures.
· Bleach dingy grout.
· Replace worn rugs.
· Hang up fresh towels.
· Bathroom towels look great fastened with ribbon and bows.
· Clean and air out any musty smelling areas. Odors are a no-no.
9. Scrutinize.
· Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
· Linger in the doorway of every single room and imagine how your house will look to a buyer.
· Examine carefully how furniture is arranged and move pieces around until it makes sense.
· Make sure window coverings hang level.
· Tune in to the room’s statement and its emotional pull. Does it have impact and pizzazz?
· Does it look like nobody lives in this house? You’re almost finished.
10. Check Curb Appeal.
If a buyer won’t get out of her agent’s car because she doesn’t like the exterior of your home, you’ll never get her inside.
· Keep the sidewalks cleared.
· Mow the lawn.
· Paint faded window trim.
· Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
· Trim your bushes.
· Make sure visitors can clearly read your house number.
Say to yourself, “This is not my home; it is a house—a product to be sold much like a box of cereal on the grocery store shelf. Make the mental decision to “let go” of your emotions and focus on the fact that soon this house will no longer be yours. Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
Say goodbye to every room. Don’t look backwards—look toward the future.
2. De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can’t see past personal artifacts, and you don’t want them to be distracted. You want buyers to imagine their own photos on the walls, and they can’t do that if yours are there! You don’t want to make any buyer ask, “I wonder what kind of people live in this home?” You want buyers to say, “I can see myself living here.”
3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven’t used it in over a year, you probably don’t need it.
· If you don’t need it, why not donate it or throw it away?
· Remove all books from bookcases.
· Pack up those knickknacks.
· Clean off everything on kitchen counters.
· Put essential items used daily in a small box that can be stored in a closet when not in use.
· Think of this process as a head-start on the packing you will eventually need to do anyway.
4. Rearrange Bedroom Closets and Kitchen Cabinets.
Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
· Neatly stack dishes.
· Turn coffee cup handles facing the same way.
· Hang shirts together, buttoned and facing the same direction.
· Line up shoes.
5. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around. You don’t want buyers scratching their heads and saying, “What is this room used for?”
6. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won’t want it. Once you tell a buyer she can’t have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
7. Make Minor Repairs.
· Replace cracked floor or counter tiles.
· Patch holes in walls.
· Fix leaky faucets.
· Fix doors that don’t close properly and kitchen drawers that jam.
· Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don’t give buyers any reason to remember your home as “the house with the orange bathroom.”)
· Replace burned-out light bulbs.
· If you’ve considered replacing a worn bedspread, do so now!
8. Make the House Sparkle!
· Wash windows inside and out.
· Rent a pressure washer and spray down sidewalks and exterior.
· Clean out cobwebs.
· Re-caulk tubs, showers and sinks.
· Polish chrome faucets and mirrors.
· Clean out the refrigerator.
· Vacuum daily.
· Wax floors.
· Dust furniture, ceiling fan blades and light fixtures.
· Bleach dingy grout.
· Replace worn rugs.
· Hang up fresh towels.
· Bathroom towels look great fastened with ribbon and bows.
· Clean and air out any musty smelling areas. Odors are a no-no.
9. Scrutinize.
· Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
· Linger in the doorway of every single room and imagine how your house will look to a buyer.
· Examine carefully how furniture is arranged and move pieces around until it makes sense.
· Make sure window coverings hang level.
· Tune in to the room’s statement and its emotional pull. Does it have impact and pizzazz?
· Does it look like nobody lives in this house? You’re almost finished.
10. Check Curb Appeal.
If a buyer won’t get out of her agent’s car because she doesn’t like the exterior of your home, you’ll never get her inside.
· Keep the sidewalks cleared.
· Mow the lawn.
· Paint faded window trim.
· Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
· Trim your bushes.
· Make sure visitors can clearly read your house number.
(Read more at the blog!)
Route 66 Realtors always welcomes homeowners who are in the market to sell!
Stop by and talk to one of our agents about putting your home on the market today!
Stop by and talk to one of our agents about putting your home on the market today!
