Searching for a new home can be trying at times, but once you find the perfect home for you and your family, it is time to begin the process of making it yours. This article will guide you through the various aspects of the sales contract to help you have a better understanding of the process of what it entails.
Sales contracts are binding legal documents, and regardless of your knowledge and understand of legal jargon, you can be held accountable for the terms of a sales contract whether you understood them when you signed on the dotted line or not. I know this idea can be daunting - and to a certain extent it should - but the most important thing is that you take steps to ensure that everything in your sales contract is factual and completely accurate before you sign.
What Is In a Sales Contract?
Your sales contract will include several key pieces of information, each of which is vital to the sales process. In order to better educate you, I have compiled this list of items that are common to most sales contracts:
* Legal Description - The first and most crucial part of any sales contract is a thorough and accurate description of the proposed property. This is used by local government to identify the exact boundaries of the property in question. Even in the rare case when there is a change in the street address, the legal description cannot be changed unless a portion of the property is sold.
* Sales Price - It goes without saying that the sales contract must include the agreed upon sales price. The price and payment portion of the contract should include details such as the escrow amount, the down payment amount, mortgage loan information and earnest money deposit. Any eventualities should be included as well.
* Closing Details - The closing is the day when the purchaser and the seller meet to finalize all of the paperwork and complete the sale of the property. A closing agent (usually a lawyer) will most likely handle these details. The sales contract should also contain the location, date and time of the closing.
* Miscellaneous Inclusions and Exclusions - Should the seller agree to leave specific items (such as appliances or furniture), this should be included in the sales contract. Also detailed should be any items that will not be included in the sale.
* Warranty Information - Any warranties (warranties on equipment, etc.) should be detailed in the sales contract, along with dates and descriptions.
* Testing Certification - In most cases, such things as wells, septic tanks, termite and pest inspections on the property must pass inspection before a sale can be completed. The sales contract should specify the details of these items and whose responsibility it will be to pay for the inspections and any necessary repairs.
* Date of Possession - The precise date that the purchaser will take possession of the home. This date can be at any time before or at the closing or even after the closing.
* Expiration Date of Offer - The contract should include an expiration date for the offer, by which time the seller must respond with either an acceptance, rejection or counter offer.
* Arbitration Agreement - Not necessary, but an arbitration agreement is most often included to allow for mediation of any disagreements to take place outside of the legal system.
* Interim Property Insurance - The property must be insured at all times, and the sales contract should have details about who is responsible for maintaining the property insurance prior to the closing date.
Working closely with your real estate agent, who will most likely handle the preparation of your offer, will alleviate most of the issues some purchasers may have with the process of preparing a sales contract. Real estate agents are experts in negotiating such specific details as are necessary and will be instrumental throughout the process. For a buyer’s guide go to: Buying Your First Home
Friday, April 16, 2010
Thursday, April 15, 2010
Top 5 First Time Home Buyer Mistakes
Buying a house for the first time can be very exciting indeed. However, buying a home - first time or not - requires a lot of research and preparation, and it’s imperative to avoid first time home buyer mistakes if you want this milestone in your life to NOT have a sour note.
First Time Home Buyer Mistakes… and How to Avoid Them
First Time Home Buyer Mistake #1 - Buying too fast.
Nobody will argue that buying a home for the first time is extremely exhilarating. Unfortunately, this excitement may cause you to rush the buying process and thus make too many costly mistakes. For instance, it’s quite easy to be mesmerized by the features of any one home because the thought of ‘owning’ it is invigorating. The downfall, is that you may end up with a house that doesn’t suit you in the long run.
Prevent this by keeping your options open. See as many homes as you can before committing to THE one.
First Time Home Buyer Mistake #2 - Chasing the ‘dream home’.
Although it’s not wise to rush the home buying process, it’s also foolish to keep holding out on houses you see because you want the ‘dream home’. Remember that for each house you say ‘no’ to, a buyer is right behind you who may want to snatch it up. In the end, your search for that ‘dream house’ will never end.
First Time Home Buyer Mistake #3 - Stretching your budget to its limits.
Again, because the prospect of owning one’s first home is so exciting, many throw caution to the wind and buy a house that frankly, they can hardly afford. The result is that the mortgage payments are so high there’s hardly any disposable income left. And what good will a big, beautiful house do if you can’t furnish it well, or worse, if you find yourself trying to scrimp on basic things like food and clothing just to meet mortgage payments?
First Time Home Buyer Mistake #4 - Not getting pre-approved for a mortgage.
Getting pre-approved for a mortgage is good for you in two ways: firstly, you get to realize just how much house you can really afford as well as how much monthly mortgage payments will be, and secondly, pre-approval means you’re prepared, organized, and ‘ready to buy’. The latter makes you a good candidate for home sellers should you find yourself in competition with others for buying the house.
First Time Home Buyer Mistake #5 - Not shopping around for the best mortgage deal.
It’s important to compare mortgage offers from different lenders. If you do your homework, it’s not impossible to end up with hundreds of dollars in savings monthly in mortgage payments.
Buying a house for the first time is thrilling. Prevent it from becoming a nightmare by avoiding the first time home buyer mistakes we’ve outlined above. For a guide for buying your first home go to: Buying Your First Home E38T9X5X8WN7
First Time Home Buyer Mistakes… and How to Avoid Them
First Time Home Buyer Mistake #1 - Buying too fast.
Nobody will argue that buying a home for the first time is extremely exhilarating. Unfortunately, this excitement may cause you to rush the buying process and thus make too many costly mistakes. For instance, it’s quite easy to be mesmerized by the features of any one home because the thought of ‘owning’ it is invigorating. The downfall, is that you may end up with a house that doesn’t suit you in the long run.
Prevent this by keeping your options open. See as many homes as you can before committing to THE one.
First Time Home Buyer Mistake #2 - Chasing the ‘dream home’.
Although it’s not wise to rush the home buying process, it’s also foolish to keep holding out on houses you see because you want the ‘dream home’. Remember that for each house you say ‘no’ to, a buyer is right behind you who may want to snatch it up. In the end, your search for that ‘dream house’ will never end.
First Time Home Buyer Mistake #3 - Stretching your budget to its limits.
Again, because the prospect of owning one’s first home is so exciting, many throw caution to the wind and buy a house that frankly, they can hardly afford. The result is that the mortgage payments are so high there’s hardly any disposable income left. And what good will a big, beautiful house do if you can’t furnish it well, or worse, if you find yourself trying to scrimp on basic things like food and clothing just to meet mortgage payments?
First Time Home Buyer Mistake #4 - Not getting pre-approved for a mortgage.
Getting pre-approved for a mortgage is good for you in two ways: firstly, you get to realize just how much house you can really afford as well as how much monthly mortgage payments will be, and secondly, pre-approval means you’re prepared, organized, and ‘ready to buy’. The latter makes you a good candidate for home sellers should you find yourself in competition with others for buying the house.
First Time Home Buyer Mistake #5 - Not shopping around for the best mortgage deal.
It’s important to compare mortgage offers from different lenders. If you do your homework, it’s not impossible to end up with hundreds of dollars in savings monthly in mortgage payments.
Buying a house for the first time is thrilling. Prevent it from becoming a nightmare by avoiding the first time home buyer mistakes we’ve outlined above. For a guide for buying your first home go to: Buying Your First Home E38T9X5X8WN7
Wednesday, April 14, 2010
Lucky Few are Buying $1 Million Homes for Just 2%
Lucky Few are Buying $1 Million Homes for Just 2%
There's a new "secret" that a lucky few have already found that's enabling them to literally buy houses that ordinarily sell for around $1 Million or more - but now for just $1,997 or LESS!
There are 3,141 counties in the United States, and each one possesses this exciting new opportunity whereby anyone with as little as $100 to seldom more than $5,000 can buy homes ordinarily valued from $30,000 to in quite a number of cases above $5 million! - and for just 1% to rarely above 5% their selling costs!
And the BEST part about this is that you can be located anywhere and still buy any home you want - even if you're 3,000 miles away or more!
But, you don't have to visit the county you buy the homes in - instead, you can do it all from the comfort and privacy of your home using just your tiny 'ole mouse!
This is what makes this such a wonderful opportunity, in that you can go online to some select websites, then pick and choose the properties you want, and then get them for between 1%-5% at most.
No matter what happens you make money!
You basically buy a homeowner's tax lien certificate because he or she wasn't able to pay their property taxes.
They by law must pay you anywhere from 16% to as much as 50% in interest - and in many cases they must pay you back within as little as 6 months.
But, if they can't pay you back, YOU own their home free and clear (and for what usually amounts to just 1% of the house's actually selling value!)
Now, at this point you can either keep the house for yourself, or you can swiftly turn around and resell it (in any economy, good or bad!) to banks, lenders or individual buyers answering your little classified ad! - and where you make a killing!
To see all the facts as to how you can do this from your laptop or PC click here: Tax Liens Made Easy
There's a new "secret" that a lucky few have already found that's enabling them to literally buy houses that ordinarily sell for around $1 Million or more - but now for just $1,997 or LESS!
There are 3,141 counties in the United States, and each one possesses this exciting new opportunity whereby anyone with as little as $100 to seldom more than $5,000 can buy homes ordinarily valued from $30,000 to in quite a number of cases above $5 million! - and for just 1% to rarely above 5% their selling costs!
And the BEST part about this is that you can be located anywhere and still buy any home you want - even if you're 3,000 miles away or more!
But, you don't have to visit the county you buy the homes in - instead, you can do it all from the comfort and privacy of your home using just your tiny 'ole mouse!
This is what makes this such a wonderful opportunity, in that you can go online to some select websites, then pick and choose the properties you want, and then get them for between 1%-5% at most.
No matter what happens you make money!
You basically buy a homeowner's tax lien certificate because he or she wasn't able to pay their property taxes.
They by law must pay you anywhere from 16% to as much as 50% in interest - and in many cases they must pay you back within as little as 6 months.
But, if they can't pay you back, YOU own their home free and clear (and for what usually amounts to just 1% of the house's actually selling value!)
Now, at this point you can either keep the house for yourself, or you can swiftly turn around and resell it (in any economy, good or bad!) to banks, lenders or individual buyers answering your little classified ad! - and where you make a killing!
To see all the facts as to how you can do this from your laptop or PC click here: Tax Liens Made Easy
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