A purchase of real estate must be done in a written offer. I will be there to walk you through this step-by-step but the information below will prepare you for what’s to come.
The written offer will usually consist of the following paperwork:
- Purchase and Sale Agreement - This is the heart of the offer: purchase price, what will you put down as a deposit for the deal, expected closing date and a list of conditions the offer is based upon, etc.
- Finance Contingency - This covers the specifics of how much of a down payment you will place, when you are applying for the loan and how many days you have to get approved. At this point you should already have your pre-approval in place for financing. We will need that pre-approval letter from your lender to strengthen our position against competing offers.
- Inspection Contingency - In any offer I will recommend that you have an inspection contingency, that is the right to have the home checked out for any material flaws, as a condition of the offer. You should also be ready with a home inspector lined up. In a competitive market you may even want to have an inspector come in before the offer so you can eliminate this contingency and improve your position with the seller.
- Home Owners Disclosures - The homeowner will provide what is called a Form 17 Seller Disclosure Statement. This is a statement by the homeowner relating to their knowledge of any defects in the home including renovations done without permits, problems with pests, etc. This doesn’t eliminate the need for an inspection. In many cases the home owner may not know and that is a valid answer on the form. In transactions involving homes built before 1978, there will also be a Lead Based Paint Disclosure. In such a case, I will provide you with a pamphlet on lead-based paint prepared by the EPA.
Depending on the circumstances, there may be other forms as well. I’ll be there to help.
Robert Gray Smith is there to help you buy homes in Issaquah WA, Redmond WA, Kirkland and Seattle area which are for sale now.
