The formal process for purchasing a home is less exciting than house hunting or moving in. It is, however, one of the most critical parts of buying a house. The purchase agreement, also known as the sales agreement or formal offer, sets the pace for the offer making process. If you have finally found the house of your dreams, having a checklist for making an offer will help you sail through the process smoothly.
- Ensure that you are pre-approved by your lender.
- Decide on a proper amount to quote for the offer. There are several ways to determine the offer price. You can compare the sales for houses in the area of interest or use market information from your research. Alternatively, you can use a comparative market analysis from your real estate agent.
- Ensure that you have access to the down payment. You need to have the funds in your account before making the offer.
- Make sure you have the funds to cover the closing costs. The amount will vary, but you can estimate it around 3% of the purchase price
- Have around 1%-3% of the purchase price for the good-faith deposit, also known as the earnest money.
- Ensure that your formal agreement includes the details for the payment of the earnest money and what happens to the amount upon acceptance or rejection.
- Negotiate with the seller of the lender to cover some of the closing costs and taxes.
- Determine the contingencies to include in your offer. For this process, work closely with your real estate agent. These might include:
- The final home approval.
- The standard home inspection.
- The process to be followed and the time frame for the replacement of items found to be at fault during the inspection.
- Finding a licensed appraiser to verify the home’s value.
- Verify if the sale is contingent upon the sale of your current home.
- Check for other contingencies required by your lender, or the law.
- Set a timeline for the seller of the house to disclose any problems and improvements that the home requires. The disclosure may include items such as natural disasters, neighborhood concerns, homeowner’s association duties, local and state laws. Your sales agreement should also include a clause for you to act upon the disclosure. There should be a timeline for your review and an allowance for you to withdraw the offer based on the revelations.
- You should decide if you are comfortable including a letter to the seller to explain your offer price. This step is not mandatory, but it can help you justify your offer.
- Establish the timeline for the expiry of your offer.
- Specify the amount of time that should pass after closing to allow you to occupy the residence. The time will ensure the seller has time to vacate.
- Have a lawyer go through the purchase agreement. This step may vary according to local state laws. However, a lawyer can help you adjust some of the terms in a standard contract.
No matter the process you follow to purchase your new las vegas home, ensure that you have professional service from Anthony Knight and the team at EXP Realty. To make the most out of the home buying process, contact EXP Realty today.