Step 6 - Your Offer was Accepted, Countered, or Rejected
Accepted – Wonderful! The sellers agreed to all of your terms that were
presented in the offer to purchase. Your
agent may have a couple of miscellaneous forms you will need to fill out and
then you can start the inspection period.
Countered – Don’t get discouraged. In today’s economy and real estate market, it
is common to see buyers and sellers counter offers. Maybe the sellers can’t afford to lower the purchase
price and pay all of your closing costs.
There are a lot of “maybes” out there.
At this point, it’s best to meet with your agent, discuss the original
offer and the seller’s counter offer.
How big is the difference between the two? Your agent should be able to assist you with
your continued negotiations and your will hopefully have an acceptance very
soon!
Rejected – Okay, it’s time to reevaluate your
first offer. Was the purchase price way
too low? Did you have too many special
stipulations written in? Speak with your
agent and decide what you have to ask for in your offer and where you may
need to remove some of the extra wants.
Step 7 – The Inspection and Resolution Period
In the original
offer to purchase contract, your agent probably asked for a 10-14 day
inspection period. This time frame takes
place once there is an accepted offer and the agents have placed a Binding
Agreement Date (BAD) on the contract.
(From this point, all time frames are set from the BAD.)
During the Inspection
Period, you are allowed to execute any and all inspections that you feel necessary,
but they can only take place during this period. Most inspections include a Home Inspection
and Wood Destroying Insect Inspection (Termite Inspection). Every situation is different, but some buyers
may also want a septic inspection, a radon gas inspection, or for older homes –
a lead base paint inspection.
It is a good
idea to hire licensed professionals in each specific field – they are state
licensed and insured for all of their work.
After each
inspection, you should receive a report regarding the inspectors’ findings. Review these thoroughly and ask
questions. If there is an issue you can’t
afford to fix or feel that the sellers should have to resolve it at their cost,
you may address this during the Resolution Period.
For Example –
The pest control specialist found evidence of termites, you can ask for the
sellers to treat this problem before closing.
Or the home inspector indicated that the concrete blocks in the crawl
space appeared to be damp, you can ask the sellers to have the blocks sealed
before closing. Or you can also negotiate
to a lower purchase price due to the inspectors’ findings. Your
real estate agent will be able to assist in any negotiations or requests on
your behalf.
Step 8 – Preparing to Close
At this point,
you have an accepted offer to purchase, completed all of your inspections,
requested for repairs to be made (if any), and you are now waiting on your
closing date. During this time, it is a
good idea to speak with your mortgage lender and real estate agent 1-2 times a
week to just check on everyone’s progress.
They may not have any new news for you if you talk to them multiple
times a week, but they should let you know that everything is on track. Your
mortgage lender may ask you to obtain home insurance quotes before they finalize
all of your paperwork.
There are also
several things you should NOT do during this time:
·
Do
Not apply for any new financing – car, credit card, new furniture, etc.
·
Do
Not change your marital status
·
Do
Not change jobs
·
Do
Not change financial institutions or “move money around”
·
Do
Not pay off any existing debts – pay all bills like you normally would unless
your lender has advised you to pay something off
Your mortgage
lender will have to review your credit history again right before closing. If there is anything new reporting, this can
change your qualification status and worst case scenario, not allow you to obtain
a mortgage loan.
Step 9 – Closing!
You have made it
to the closing table. It’s now time to
stretch your fingers and grab that blue pen.
After signing your name 50 million times, you are a home owner. Congratulations!!!!
Catherine Moody with Hammontree Real Estate
865-599-8780 or 865-579-3868
cmoodyhomes@live.com
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