Purchase Agreements

Homebuyers who have not bought or sold a home recently Amy be surprised by the complexity of today's purchase offers. Gone are the days of one-page purchase contracts. Many of today's purchase offers are 5 pages long, and include additional pages of addendums and disclosures.

Verbal offers to buy real estate are not binding. Offers should be in writing. The written offer is usually drafted by your real estate agent.

Most buyers think simply in terms of the price when they decide to make an offer. The price is just one of many details that go into a purchase contract. An offer will include the following: the amount of earnest money, the amount of the down payment, the amount of the mortgage, the type of financing the buyer plans to get, the closing date, an itemization of the appliances included and details on who pays for fees associated with the sale.

Price, while important, is not the only consideration. For example, a full-price offer might not be accepted if it is contingent on the buyer's selling their home. Sellers need to know all the terms of the buyers' offer before they can decide if the offer is acceptable.

Acting quickly when you see a home you want can be the difference between getting it or losing it to another buyer. The real estate market will not stop while you decide whether you want to buy a home or on what terms.

The best time to familiarize yourself with the contract is when you are beginning your search. Ask your agent for a copy of the purchase contract. Review it and if there is anything you do not understand, ask for an explanation or consult an attorney. If there is a dispute between you and the seller, a court will hold you to what the purchase contract says, not to what you thought it meant or what you thought the Realtor said it meant. If you decide to back out because of the structural inspection report, can you do that? If you understand the Purchase offer before you find the house, you can avoid a lot of stress and minimize the Lakewood of misunderstandings.