Reviewing Offers and Getting
Under Contract
Negotiation
Once I start receiving offers, I will diligently work to learn as much as possible about the prospective buyers so that we can negotiate with confidence. We’ll take into consideration your preferred timeline, buyer’s financial situation, type of loan, appraisal contingency and other terms that will help progress a strong transaction.
Option Period
The option period is an optional and highly recommended set of days that buyer purchases for a nominal fee when they make an offer on a property in order to make sure the property doesn’t have any adversity or major repairs to be done. It normally ranges from 0 to 7 days, but the least amount of days, the more attractive the offer is.
Home Inspection
Normally buyers pay for inspection once the contract has been executed (an offer has been accepted and delivered). A home inspection is not required by the lender but is highly recommended to the buyer. Home inspections happen within the first days of the option period. If buyer finds major problems on the subject property and still is within buyer’s option period, expect the buyer to renegotiate the terms on the purchase. Buyer may ask for repairs, for a seller’s concession, or lower the sales price of the property. However, it is up to you to accept or reject the requests. It’s difficult to negotiate repairs that were visible when buyer visited the property or repairs mentioned in the seller’s disclosure. That’s why a good seller’s disclosure will come in handy.
Appraisal
The appraisal is an opinion of the value of your home. The appraisal is required by the lender, if buyer pays in cash, buyer is not required to get an appraisal. In Texas, appraisals are conducted by a licensed home appraiser as mandated by the Texas Real Estate Commission. Appraisal can be ordered as soon as you submit the contract to the lender. However, if you have an option periods in place, make sure that you have checked the home inspection report and you are ready to move forward with the conditions of the property. Also make sure that any repairs paid by the seller are in writing.
Title Policy
Title insurance protects against financial loss that could be caused by problems with the property’s title. Title insurance companies defend against lawsuits that challenge the title and pay the insured up to the policy limit if a covered loss happens. Although seller pays for title in about 70% of the transactions, there are transactions in which buyer pays for the title policy.
Survey
A property survey confirms a property’s boundary lines and legal description. It also determines other restrictions or easements included in the property. Survey can be paid either by buyer or seller and it is to be ordered within a certain period of days after the contract has been accepted. Sometimes an old survey can be sufficient if the property has not had substantial structural modifications. When using a previous survey in a transaction, seller must sign a T-47 Affidavvitt to declare that the house has not had substantial structural modifications within the period of time they lived there.
Utilities
it is wise to schedule ALL utilities to be turned off by closing. It is not difficult to transfer them into your name as long as the service has not been terminated. Read the last page of the real estate Sellers’ disclosure and look up the names of the utility companies that the seller has used. Once you have the names, a quick online search should get you where you need to go.
Final Walkthrough
This is the last visit you will schedule to see the property right before closing the deal. This is an opportunity to verify the conditions of the property as it should be quite similar than the first time you saw the property. If you requested repairs, this is an opportunity to check that all repairs have been satisfied.
Closing Date
A buyer should bring a valid form of identification, proof of funds, and any other necessary documentation to a closing meeting. Before signing the mortgage note and deed, they will be asked to carefully read the closing disclosure, verifying the loan estimate and settlement statement.
The home-buying process may appear to be lengthy and complicated, but education and preparation can assist Texas residents in finding the best homes for their needs.
Multiple offer situations
The market is constantly shifting. That’s why it is recommended to follow the advice and opinion of a real estate agent to understand what to do under multiple offers. adequate our offer to be more competitive. A lot of homes are being sold for list price or higher. Just be patient and expect your real estate agent to advice you on that matter.