 When you found the house for buying, you should not lose time. Decide on an initial offer you will bid (you may get advice from the buyer’s broker, but are not recommended to consult seller’s agent; better devise the plan of actions yourself).
Investigate the information about recently sold houses in your area and check what the difference between the initial and the final price was. Here are some tips when deciding on the price to offer:
• If the difference between the first and the final price of the houses in your area tend to be about 5 to 7 per cent, make your initial offer, for example, 10 per cent below to leave the space for negotiation.
• If you really like the house, don’t offer a too low price, since the buyer may be quickly discouraged to work with you.
• Pay attention to whether the recent tendency in home sales is up or down.
• Although sometimes it may be acceptable to negotiate a price directly with the seller, it is usually recommended to do it through experienced intermediates. Be sure to add trustworthiness and sincerity in the process, since the final agreement must be satisfying for both sides.
When the deal is reached, the agreement is drawn. It is the time when you should make sure your lawyer checks this document for the following conditions:
1) your getting a mortgage;
2) a house inspections that shows no significant defects (define beforehand what “significant” really means);
3) a guarantee that you may make a walk-through inspection a day before the final date of the deal. This will give you a chance to inspect the house for any damages that you haven’t seen before or that have been done during the move and ask for adequate repair or compensation.
At this stage you should also take care of the good-faith deposit that goes into an escrow account. This deposit is usually 1-10 per cent from the house price and the seller receives it once the deal is closed. You can receive the money back if the deal doesn’t go through and you and home doesn’t fail any of the contingency clauses.
Homeowner’s insurance policy is another aspect that needs to be dealt with. You can inquire for some recommendations from friends, a lawyer or an estate agent. Besides, it is useful to hire your own home inspector (also good when recommended by someone). Try to be present during the inspection of the house, since you will learn a lot about its general condition, construction materials and any possible damages. If there is a major defect found during the inspection, you may either ask the seller (through a lawyer or an estate agent) to repair it before you move in or deduct the cost of the reparation from the house price. The seller may not agree to any of these conditions. In this case you are free to decide whether to reject the whole thing altogether or accept the reparation for your own expenses.
Two to three days before the closing you will be given a final HUD Settlement Statement by your lender. The Statement will list all the charges you will have to pay at closing. Your task is to review it carefully.
Bear in mind that selling/buying the house differs depending on the region you leave in. If you have any concerns, you should consult a professional such as a real estate agent or broker who can give you all the necessary information.
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