BUYER RESOURCES

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• The offer price
• Type of financing (Cash, FHA, VA, Conventional, etc.)
• Home inspection period
• Closing cost assistance (if any)
• Target date for closing
• Earnest money deposit – your KW agent can advise you about how big your deposit should be based on local customs and current conditions
• Time limit for the offer

• Financing - Unless you’re paying cash, it’s typical to write your offer with a contingency clause that lets you out of the contract and also get your money earnest money back if your financing falls through. Just because you have a pre-approval for a loan, it does not mean that you are guaranteed a loan approval.
• Home inspection -  Its very common to make the sale contingent on a satisfactory home inspection report. This protects the buyer from any unforeseen issues that the home inspector uncovers during the inspection.
• Home Sale - The buyer can make a contingency clause that makes the sale of the "new home"  dependent on the Buyer selling their current home prior to closing on the "new" home.

Multiple offers can be a common occurrence when in a competitive market. This can mean:

• That there are a lot of buyers and not a lot of homes available.
• Distressed Properties such as Foreclosures or Short Sales.
• It could even just be a particular home that is drawing a lot of interest from buyers for a number of reasons.

When this happens, the Seller has a few options:

• They can accept the highest and best offer
• Counter one offer that is closest to what they are looking for
• They can counter all of the offers to try and get an even better offer because of the demand

• A counter offer is an offer made in response to a previous offer by the other party during negotiations for a final contract. Making a counter offer automatically rejects the prior offer, and requires an acceptance under the terms of the counter offer or there is no contract. 

Once the Buyer and Seller have agreed to all the terms written in the contract and then sign it,  you now have an "Executed Contract". The contract is a bilateral, binding document that outlines what is required of both the Buyer and Seller. 

Most common contractual items that have to be addressed right away due to time constraints listed in the contract:

• Drop off your earnest money deposit (typically made and payable to and delivered to the title company or attorney listed on the contract)
• Schedule inspections - Home Inspection, Termite inspection, Wind mitigation, structural inspection, septic tank inspection, etc. Ask your Charles Rutenberg agent for any additional inspections that may be necessary.

Both the Buyer and Seller are held liable to fulfill their requirements of the contract. If either party does not fulfill their requirements then it is a breach of contract by the party that does not fulfill said requirements and the contract is cancelled. This could lead to financial ramifications. You should consult with a Charles Rutenberg agent or a Real Estate Attorney for more information on this.

Your home inspector will complete a thorough inspection of the house with an intense check list of items to be inspected and tested. You’ll get a written report that identifies potential problems and future maintenance issues. It’s up to you to decide whether the report means you ask the sellers to make repairs or ask the seller to reduce the purchase price accordingly, or you can walk away from a house.

The inspector will check:

• Structural conditions such as the foundation, beams and floors
• Roof condition
• Mechanical systems such as heat and air conditioning
• Appliances – to make sure they’re working
• Plumbing – for leaks, rust and water pressure
• Electrical systems such as grounded outlets and code violations
• Safety issues such as stairs, handrails, mold or chimney maintenance

 You and your Charles Rutenberg agent should attend the home inspection to learn about home maintenance and also so you can see any potential problems yourself. The inspector can answer questions as you go, so if there’s anything you don’t understand or are worried could be a problem, just ask. 

You and your Charles Rutenberg agent can review the Home Inspection report and then decide whether there are any items listed in the report that would cause you to not want to move forward or that are of concern to you. If there are items listed of concern, get quotes to repair the items and then discuss with your Charles Rutenberg agent to see the best way to proceed. You may want to re-negotiate the purchase price or ask the sellers to fix the items prior to closing.

As your closing nears, you should:

• Stay in close touch with your Charles Rutenberg agent, lender and title company.
• Avoid lowering your credit score with a new credit application or late payments.
• Don't make any large purchase such as a vehicle or boat.
• Confirm that your contract contingencies are resolved, including the home inspection, an appraisal and your financing.
• Finalize your homeowner’s insurance policy.
• Gather your down payment and closing cost funds in an accessible account.
• Review your Closing Disclosure form, which you’ll receive three days before your settlement, and ask questions if you don’t understand something.
• Arrange a wire transfer or get a cashier’s check for the funds you need for the settlement.
• Schedule a walk-through of your new home within 24 hours before your closing to check its condition.
• Practice signing your name!

A lot of signing!! Make sure you clear your calendar for a couple hours to ensure you have enough time. For the closing you will need to bring with you:

• A government-issued photo ID.
• Proof of homeowner’s insurance.
• Your copy of the contract.
• All paperwork associated with your loan and the home purchase.
• Your cashier’s check or wire transfer confirmation.
• Your checkbook for miscellaneous funds that weren’t included on your closing estimate.

After your closing:

• You will receive the keys to your new home.
• Keep all your signed documents in a safe place.
• Change your address.
• Change the locks and security codes on your home
• Review your due dates and new budget.

Stay in touch and don't forget to refer your favorite Charles Rutenberg agent to all your friends and family!