Additional Terms
If anything is not outlined in the Purchase Agreement, the additional terms will allow you to write in terms that you want to be considered. If you as a buyer need closing cost assistance from the seller, this is where you'd write that and the amount asking for.
Another example of an additional term is stating that the Seller must close out all permits and liens on the property, which is found with the title search.
Another example of an additional term is stating that the Seller must close out all permits and liens on the property, which is found with the title search.
As-is
Contracts by which the buyer accepts the property in its current condition, "as is" without warranty by the seller as to any particular conditions.
Contingent
Contingent "or" pending means that the homeowner has accepted an offer from a prospective buyer and that the offer comes with contingencies. Contingencies are conditions that could be Inspections - appraisals, or others.
Contingencies
Contingencies allow a buyer to cancel the Purchase Agreement and get their earnest money back under certain conditions. It's rare to make an offer with no contingencies because you do need to protect yourself. But sellers Understandably don't like to agree to too many. And when the market's tight, they don't have to. Here are some common, practical contingencies:
Financing - appraisal value
Clear title -inspections
WAIVE all Contingencies
Homebuyers are waiving the contingencies to make their offers more attractive to home sellers. A few contingencies we see in healthy markets are:
+ Inspection
+ Appraisal
+ Sale of other property
But with today's market still tipped to favor Seller, although this could be the winning force, be sure you understand the offer you are submitting. Also, know that there could be other ways to strengthen your offer.
Financing - appraisal value
Clear title -inspections
WAIVE all Contingencies
Homebuyers are waiving the contingencies to make their offers more attractive to home sellers. A few contingencies we see in healthy markets are:
+ Inspection
+ Appraisal
+ Sale of other property
But with today's market still tipped to favor Seller, although this could be the winning force, be sure you understand the offer you are submitting. Also, know that there could be other ways to strengthen your offer.
Debt-To-Income Ratio (DTI)
A ratio that compares a home buyer's expenses to gross income. A higher DTI can mean denial of the loan or a higher interest rate.
Earnest Money
Earnest monies "earnest money" is a deposit. In the form of a check or money order, that shows the seller you're serious. It's typically 1% of the purchase price, but in hot markets, it can be more. If the seller rejects your offer, you get your deposit back. If they accept your offer, it will be applied to the price when you close. In the meantime. The seller's broker holds the money in escrow.
Remember: Buyers will likely lose their earnest money if they back out of a real estate transaction. Earnest money gives sellers monetary assurance that a buyer won’t back out of the contract without valid cause.
Remember: Buyers will likely lose their earnest money if they back out of a real estate transaction. Earnest money gives sellers monetary assurance that a buyer won’t back out of the contract without valid cause.
Equity
A percentage of the home's value is owned by the homeowner.
Offer
Now it's time to sign the purchase agreement and Your realtor will send it over to the listing agent Along with your pre-approval letter. Once your offer is submitted, the seller could accept, counter or reject the offer completely.
Purchase Price
The price covers the home itself and its "fixtures." Fixtures are anything permanently attached to the building or the land, like ceiling fans or fences. It also covers anything else you'd like to make part of the deal, like the washer and dryer, As outlined in the property description.
Realtor
A person who acts as an agent for the sale and purchase of buildings and land; a real estate agent.
Standard practice is that the seller pays the real estate commission of both the listing agent and the buyer's agent.
Standard practice is that the seller pays the real estate commission of both the listing agent and the buyer's agent.
Seller's Disclosure
Seller's Disclosure refers to the seller's legal obligation to reveal known defects about the home or property they're selling.
When sellers ask me, "What should I disclose?"
I always reply with, "If you know about it, disclose it because if you don’t, your neighbor will!”
When sellers ask me, "What should I disclose?"
I always reply with, "If you know about it, disclose it because if you don’t, your neighbor will!”
Timelines
The purchase agreement specifies how long the Seller has to respond to your offer and when you'd like to close on the home. In a hot market. You want to ask for a short window, so there's less chance for other buyers to step in and outbid you. But when a seller is getting multiple offers, they might set a deadline.
The timeline also includes the closing date, usually 30 to 60 days from the date of the purchase.
The timeline also includes the closing date, usually 30 to 60 days from the date of the purchase.
Underwriting
A process a lender follows to assess a home loan applicant's income, assets, and credit and the risk involved in offering the applicant a mortgage.
