The first step in buying a new home is to familiarize yourself with the real estate contracts. Real estate contracts are rather lengthy so it is important that you understand the rights and obligations you agree to when entering into a legally binding contract. Real estate agents are trained to explain the contracts to their clients. Your agent must provide you with a sample contract. You should read over the sample contract and ask your agents about the unclear areas in the contract. The agent will explain the contract and the repots associated with the real estate transaction. This process takes significant pressure off the client during the negotiation process. Everything should be put in writing and the words should be specific and cautiously chosen. In the event of litigation, it is what is in writing that matters to the courts.
When you have found your new home, there are a few things you need to look into before making an initial offer. First, try to investigate other similar homes that were sold in the same neighborhood and base your offer on those numbers. Secondly, find the seller’s motivation. Why is the seller selling their home? Why are they moving? How long has the home been on the market? And so forth. On the other hand, the agent considers the following before writing up an offer. Is the property still for sale or are these offers pending? Is it a probate or foreclosure sale? How much do the sellers owe and are they willing to carry back a loan? And who pays for certain transfer fees.

All these issues affect how a contract will be written up. The negotiation process can be emotional so as a client, you have to be realistic with your offer. If you put forward a “lowball” offer, the seller may reject it along with further offers.

Action Steps

The best contacts and resources to help you get it done

Tips & Tactics

Helpful advice for making the most of this Guide

• Keep an open mind, be realistic and educated about the whole real estate transaction which typically takes 30 to 45 days to close after a contract has been accepted.