Are you ready for some Summer Home Buying tips?
Where did the year go?! It’s summertime already! Well, not actually, as summer officially starts on June 21st, but it sure is looking and feeling like summer, don’t you agree?! Summertime can be a busy time of year for Sellers to put their home on the market for sale and also a busy time for Buyers to begin their search for the perfect place to call home. Local Real Estate markets will usually be brisk with home selling activity during the summer months when homeowner’s children have finished school, being out for summer break, making it a lot easier to plan and complete a move. Plus, everyone has a lot more energy during the summer months, it seems.
If you’re looking to buy a home, you could probably use a few home buying tips. Today’s article will focus on knowing a few of the standard terms of a Real Estate Contract in order for your offer to set you apart from other Buyers; we’re all looking for an edge, after all.
What should you do to make your Real Estate purchase contract stick out from other Buyers?
Know the terms of a Real Estate purchase contract that can set you apart from other Buyers
#1 – Know about how the escrow deposit you put up can matter, along with when the escrow deposit is due.
Escrow deposits can vary and some states/counties may have set norms of what is expected in the way of an escrow deposit. Keep in mind that, as a Buyer, an escrow deposit can clearly show a Seller how serious or committed you are in buying their home. If you want the Seller to know that you really love their home and want to buy it, your escrow deposit is one thing that can let them know. If you’re buying a $400,000 home and your Real Estate contract reveals a deposit of $1000, does this really show the Seller how serious you are about purchasing their home? That’s less than 1%, which screams; not too serious, not too committed. A bit of seriousness begins at a minimum of 1% and as you go up from there, lets the Seller know of your intentions. Depending upon the type of financing you’re utilizing, your loan type can set forth the amount of your deposit. For example, if the loan you’re pre approved for requires a 3.5% down payment, why not put forth 3.5%? Or you could put down $10,000 and the balance at a later agreed upon date; for example, within 2 weeks or after the completion of your home inspection. There are a number of different options that will show the Seller of your good intentions. These options can be discussed with your trusted Realtor. Just remember, that if you try to skimp on your deposit, there could be another Buyer that comes by offering a more attractive deposit, which the Seller may read as a more interested Buyer. It’s a good time to put your money where your mouth is, so to speak. You don’t want your offer to appear as being nonchalant. Now is not the time to show you don’t care.
Also, the quicker you put forth your deposit, the better. And by all means, when the deposit is due by a certain date, make sure you have made your deposit to the Escrow Agent by the due date. If the Real Estate Purchase Contract states the deposit is due in 3 days and you make your deposit on the 4th day, you’re now in default of the contract. If you try to get out of the contract, you can bet that the Seller will go after you deposit. So to summarize, make sure you really want to purchase the home and then show that you want to and do as you state. If you’re not serious, don’t present an offer.
#2 – Put forth your best Financing commitment due date
I’m sure it was recommended to you that you get Pre Approved from your Mortgage Lender regarding your financial ability to make a Real Estate purchase. Your Lender should then be able to provide you with a date in which they can provide you with a financing commitment. This should be a written commitment that indicates you have received a go ahead from your Lender for them to provide you with the financing needed to purchase your home. This will typically come with a few conditions that must be met with the formality of gathering certain documentation. On our standard South Florida Real Estate contract, the default commitment date is 30 days, however, many reputable Lenders should be able to provide a commitment within 15-20 days, for example. Of course, check with your Lender to confirm their capability to meet such a date. Remember, that any date that you put forth in the Real Estate purchase contract (REPC), will need to be met, so as not to be in default. If you state on the REPC that you will provide commitment within 15 days and you provide a written commitment on the 18th day, you are now in default of the REPC and any attempt by you, as a Buyer, to cancel the REPC can result in you forfeiting your escrow deposit.
#3 – Advise of a swift inspection date.
Here in South Florida, our REPC, indicates a standard inspection period of 15 days. Stand out from other Buyers by offering to complete your home inspection period in a shortened time period; instead of the standard 15 days, consider offering 5 to 7 days to get your inspection completed.
It’s important to know that these specified dates on the REPC are calculated from the REPC effective date. The effective date is determined from the last party to the contract (Buyer/Seller) to sign and/or initial and then deliver the contract to the other party; hence, this is the effective date. Effective dates are critical to be aware of and adhere to. You’ll want to make sure you hire a professional, skilled Real Estate Agent who understands this well or make sure you have an Attorney on your side.
This article is not intended to provide legal advice, as you should hire a Real Estate Attorney to provide legal advice.
I’ve listed a few of the main terms to speak loudly about when presenting your offer to buy a home, so the Seller can hear you! Perhaps you have other questions about buying a home – call me now, Lynn Pineda at 954-464-1100 or email at LynnP@ImagineYourHouse.com
Real Estate Article written by South Florida Realtor, Lynn Pineda. Keller Williams Coral Springs Realty. June 5, 2014. Real Estate Promises Delivered.