REALTORŪ groups, working with
legal counsel, have developed forms that are
appropriate for realty transactions in specific
communities. Such documents include numerous
sale conditions and their wording should be
carefully reviewed to assure that they reflect
the terms you want to offer. REALTORSŪ can
explain the general contracting process in
your community as well as his or her role.
While much attention is spent on offering
prices, a proposal to buy includes both the
price and terms. In some cases, terms can
represent thousands of dollars in additional
value for buyers -- or additional costs. Terms
are extremely important and should be carefully
reviewed.
How much do I offer?
You sometimes hear that the amount of your
offer should be x percent below the seller's
asking price or y percent less than you're
really willing to pay. In practice, the offer
depends on the basic laws of supply and demand:
If many buyers are competing for homes, then
sellers will likely get full-price offers
and sometimes even more. If demand is weak,
then offers below the asking price may be
in order. Keep in mind in a market where supply
is great, home many be priced to sell or priced
for the condition they are in. Your REALTORŪ
will assist you with the data you need to
make an informed offer.
How many inspections?
A number of inspections are common in residential
realty transactions. They include checks for
termites, surveys to determine boundaries,
appraisals to determine value for lenders,
title reviews and structural inspections.
Structural inspections are particularly
important. During these examinations, an inspector
comes to the property to determine if there
are material physical defects and whether
expensive repairs and replacements are likely
to be required in the next few years. Such
inspections for a single-family home often
require two or three hours, and buyers should
attend. This is an opportunity to examine
the property's mechanics and structure, ask
questions and learn far more about the property
than is possible with an informal walk-through.
Your REALTORŪ can provide you a list of inspectors
for you to contact. They will work for you
and be paid for by you. The cost of a home
inspection can range from $125 to $400, depending
on what types of inspection you do.
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