Getting Started

Beginning the negotiations

When you find a home in a neighborhood that matches your lifestyle, keep in mind that buying a home is too important an investment for a quick decision. In some cases, you may want to negotiate with the seller. In other cases, the home may be such a good value that prolonged negotiation may cause you to lose the home to another buyer.

You are the only person who knows what a particular house is worth to you. For example, a house next to a school may have enhanced value to a family with several small children. However, a retired couple may consider the noise from the school to be an extreme liability.

When you're deciding what price you are willing to pay for a house, here are some questions to consider:

What is the asking price?
Why is the owner selling?
How long has the house been on the market? Has the price been lowered?
Does the price compare to other houses in the neighborhood?
What is the required down payment?
What financing method is acceptable?

When you've determined what you think is a fair price, it's time to make an offer.

Making an offer

When you make an offer to buy, Bruce Busch will thoroughly discuss all the factors with you and then present the offer to the homeowners real estate agent. Next, the listing agent (and selling agent if customary) presents the offer to the seller. In this meeting, the parties discuss the offer. At this point, the seller either:

Accepts the offer as presented
Makes counter offers on areas of disagreement
Asks you to resubmit

An offer to buy becomes a contract when all parties have approved and initialed each counter revision and signed the final agreement. When you sign the offer to buy, you are required to make a deposit to show you are earnest about your desire to buy the house. For this reason, you may hear the deposit referred to as earnest money.

Checking your contract

Bruce Busch will explain the sales contract in detail so that you will understand the responsibilities and privileges that it entails. Although sales contracts differ, there are several items you may want to include:

Deposit

The contract should clearly state your amount of earnest money, the amount you will be paying at settlement and your means of financing. Ten percent of the purchase price is a common purchase deposit. The money is deposited in an escrow and held until settlement. An escrow is a deposit of money with instructions to a third neutral party to carry out the provisions of an agreement or contract.

Financing Contingency

Specify the total loan amount, interest rate and the exact terms. Often an alternative contract clause will be included to allow buyers to accept different financing than specified in the contract, as long as the seller's profit is unaffected.

Title Company or Attorney Ask for a recommendation of an experienced real estate attorney or title insurance company to conduct your settlement. Remember to clear it with the lender, because their interests are also involved.

Inspection/Environmental Contingency

To ensure that the property has no structural or other defects, you may want to have your contract contingent on an inspection report. You'll have to pay for the inspection, but if a problem is found it will be well worth it.

Repair Work

Electrical, plumbing, heating and mechanical systems should be working at the time of settlement, unless you agree to accept them in as-is condition. Be sure to schedule a walk-through inspection before settlement.

Wood Boring Insects

Make sure the contract allows you to obtain an insect infestation inspection. The seller should be responsible for paying for treatment and repairs if active infestation is discovered. Get a written report at settlement stating that the house is free of infestation.

Personal Property

Any items that are not permanent fixtures and are to remain in the house--drapery rods, washers, dryers, refrigerators or carpeting--should be specified in writing. This avoids any misunderstanding that may occur with oral agreements.

Attorney Review

Allows an attorney a specific period, after negotiating with the seller, to review, revise or to exercise the option to cancel the contract.

Processing the sale

After you have signed contracts, we stay with you every step of the way. You can count on Bruce Busch to follow through with any details involved in processing your sale.

We will:

assure that deposit moneys are deposited in accordance with the terms of your contract
oversee the lender to be sure the funds are available as soon as possible
coordinate all necessary pre-closing inspections, offer you guidance in working out any unforeseen problems that may be uncovered as a result of the inspections and ensure that you have acquired homeowners insurance
provide you with the names and phone numbers of utility companies so that service will be available
accompany you on your pre-closing walk-through
attend the closing to ensure that passing of the title goes smoothly

We would be anxious to hear from you after closing with any questions that you may have so we can help in your greater enjoyment of your home and neighborhood.

Next, closing on a home