Welcome to the AllIdahoFallsRealEstate.com Blog

2016-05-13 14:21:57
3 Important Aspects of the Purchase Agreement

It’s finally happened! You’ve found the home you want to purchase.

The next step in the process is to decide how much you want to pay for it and get a signed offer to purchase to the seller.

While every single line in the purchase agreement is important, some are more critical to understand before signing.

Let’s take a stroll through some of these, in one of the most important contracts you’ll ever put your signature to.

Earnest Money Deposit

The earnest money deposit is the amount of money you’ll be giving the seller when you submit your offer to purchase (or shortly after it is accepted) to show you are serious. Don’t confuse this with the down payment, which is a lender requirement.

The amount varies, but 1 percent is typical. This money is kept either in the broker’s trust account or with the title company. If the seller accepts the offer, the earnest money will be applied to the purchase of the home.

Closing Date

There are different schools of thought on how to strategically choose a closing date. Some people feel it’s best to close escrow as late in the month as possible. This is because prepaid interest, which you’ll need to pay at closing, is prorated from the date of closing to the end of the month.

If you are cash-flow conscious, on the other hand, you may want to close escrow early in the month. Your prepaid interest charge will be higher but, because mortgage interest is paid in arrears, you will skip two mortgage payments instead of one.

That said, there are some times that are better for closings, for various reasons:

  • Avoid closing escrow near the fall and winter holidays, especially Thanksgiving, Christmas Eve or New Year’s Eve. Real estate professionals (agents, lenders and title reps), like folks in all other businesses, take time off to be with friends and family.
  • If you are both selling and buying you may need a simultaneous close, allowing both escrows to wrap up on the same day. This is a delicate process and it does have its shortcomings, which I can explain to you if you are in this situation.

A real estate agent worth his or her salt will walk you through the purchase agreement, line-by-line to ensure you understand what you’re signing. Never sign the contract unless you do.

Personal Property

Anything that is not permanently attached to the home is considered personal property and sometimes this property is included in the sale. If so, it will be listed in the purchase agreement or in a separate addendum.

Items of personal property commonly included in home sales include:

  • Appliances
  • Yard equipment
  • Furniture

Other Important Information

  • Any special conditions or  common contingencies which may include: repairs that need fixed, the buyer obtaining financing (waiting on the sale of another home), a home inspection report, or any other items that one may place a contingency for.

  • The closing costs - who is paying for what? Commissions, repairs, home warranties etc.

The Cindy Bates Group @ Keller Williams East Idaho

Office 280-227-5321 

Cindy Bates 208-227-5321 * Shalan Hyde 208-716-5480 * Zac Keating 208-313-1180

 

 
Blog Archive
2019-02-21 11:58:34
How To List Your Home for the Best Price

2019-02-19 14:53:39
Greater Idaho Falls Association of Realtors MARCH BLOOD DRIVE

2019-02-18 13:26:32
Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!

2019-02-15 10:18:25
Why Homeownership Matters Now More Than Ever

2019-02-14 11:16:28
Pre- Foreclosures on Zillow

2019-02-12 11:59:42
Thinking of Selling Your House in Idaho Falls? This is a Perfect Time!

2019-02-08 09:24:20
The Cindy Bates Group is Here for You!

2019-02-07 14:59:23
Why you Shouldn't FSBO

2019-02-06 11:38:31
Why It Makes No Sense to Wait for Spring to Sell

2019-02-05 10:54:50
Whose Mortgage Do You Want to Pay? Yours or Your Landlord’s?

2019-02-01 10:27:08
5 Reasons Idaho Falls Homeowners Throw the Best Super Bowl Parties!

2019-02-01 09:33:07
Idaho Falls, Do You Know How Much Your Home Has Increased in Value?

2019-01-30 10:53:44
Is Student Loan Debt A Threat to Homeownership? No!

2019-01-29 09:18:14
Tuesday Tid Bit! It's not too late! Jan 31, Feb 1

2019-01-28 16:19:37
Think You Should For Sale By Owner? Think Again!

2019-01-24 09:24:16
3 Things You Need in a Shifting Real Estate Market

2019-01-23 10:45:23
Do You Prefer the Charm of an Existing Home?

2019-01-22 09:47:32
Buying a Home Young is the Key to Building Wealth

2019-01-21 20:21:40
The Difference Having a Professional on Your Side Makes

2019-01-18 09:24:53
What is the Cost of Waiting Until Next Year to Buy?

2019-01-17 11:31:14
Where is the Housing Market Headed in 2019?

2019-01-16 15:21:10
Is the Recent Dip in Interest Rates Here to Stay?

2019-01-15 15:04:55
Tax Time is Upon Us

2019-01-14 22:31:46
Buying a House This Year? This Should Be Your 1st Step!

2019-01-11 12:36:18
Homeownership Remains a Huge Part of the American Dream

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.