Once you have found the home and/or property you want to purchase, it is important that you are prepared to make the best deal you can.
To negotiate the price, you need to know and assess your negotiating position. Know the facts and plan your negotiating strategy.
The most important factor is knowing the market prices. Ask your Accredited Buyer’s Representative to provide you with a Comparative Market Analysis prior to making an offer.
Also, you will be in a strong negotiating position if:
It is also helpful for your negotiating position if you can find out and the answers to these questions:
Any seller who is selling one or two dwelling units who is 1) represented by a Licensed Real Estate Agent; or 2) not represented by a licensed real estate agent but who receives a written request from a prospective buyer, must complete and make available to the buyer a “Residential Property Condition Disclosure Statement.”
The purpose of the Disclosure form is for the seller to inform a prospective buyer about the condition of the home/property. It is only good for 180 days. After 180 days the seller is required to complete a new form.
The disclosure form identifies items and improvements in the home which are included in the sale and whether or not these items and/or improvements are in normal working order.
A Disclaimer Statement is presented if 1) the Seller has never occupied the home; 2) makes no disclosures relating to the properties’ condition; and 3) the seller has no actual knowledge of any defect concerning the property.
If a house was built before 1978, the seller must provide you with a Lead-Based Paint Disclosure.
As a buyer, do not sign an offer to purchase a home until you have received all of the disclosures that should be made available to you.
The following list outlines numerous issues buyers should consider when purchasing property. Some are addressed by sellers’ disclosure documents, others are not. Your buyer’s rep can counsel you on the specifics in the lake area and discuss appropriate steps to discover and remedy potential property concerns.
Heating and/or Air Conditioning
Sewer and/or Septic System
Other Systems and Fixtures
Odor, Smoke, & Hazards affecting property due to proximity
Toxic Waste Dumps
Neighborhood Noise (e.g., barking dogs)
Availability of or Consequences from Public Parking
Zoning impact how nearby property will be used for future
Termite or Other Pest Infestation
Flooding (including federally designated flood plain)
Utility or Other Easements
Adjoining Private Roads (and obligation to maintain)
Shared Driveways, Walls, or Encroachments from or on Adjacent Property
Stigmas (including registered sex offenders)
Possible or Probable Short Sale or Foreclosure
Building Code Violations, Zoning Ordinances, or Other Restrictions
Zoning (restricting buyer's intended use for the property)
Homeowners Associate Obligations
Tenancies, Judgements, or Tax Liens
Proposed Assessments or Zoning Changes
Mechanics' or Materialmens' Liens
In negotiating the purchase of your new home, the initial step will be to instruct your REALTOR® to make an offer to purchase. This offer should be in writing and accompanied by an “Earnest Money” check to show “good faith.” (This should also be done AFTER the Buyer has procured a “Pre-Qualification Letter” from the lender of their choice to accompany their offer.)
The offer should include:
When your offer is presented, the Seller’s options are to:
When the buyer and seller agree on the terms of the contract,
Once the Appraisal has been completed and all other contingencies satisfied and removed from the contract, all parties will move towards closing. (Buyer and Seller may agree to start Abstract and Title work prior to the appraisal and other contingencies being completed. However, all parties must be aware that fees will be incurred that will have to be paid by respective parties should the transaction not close. Buyer must sign a Buyer’s Authorization form agreeing to pay bills incurred on their behalf during this process.”
When the Abstract has been brought up to date, an Attorney will look it over and make sure the Buyer is receiving “clear Title.” Once this is completed, a Title Insurance Commitment (if purchased) will be issued.
A final closing date will be scheduled.
Review the Documents – A Settlement Statement will be prepared (no later than 24 hours prior to closing) called a “HUD” for all parties to review prior to closing. You may request to review any other closing documents prior to closing such as your lender’s documents, Title Insurance Commitment, etc.
Make arrangements for a Certified Check, wiring of funds or a Cashier’s Check for payments due at closing. The check should be made out to the Closing Company.
Buyers will perform a “Final Walk Through” of the property
Make sure the utilities have been transferred into your name and your Home Owner’s Insurance Policy is in effect the day of closing.
After all documentation is signed and all monies paid, possession is usually transferred. You will receive the keys to your new home! Congratulations! You are a new Home Owner!
When you write an offer on a property, you will have a specified time period to perform and complete all inspections, investigations and reviews of the property (10 days if left blank in contract).
The date the “time period” starts for you to conduct these inspections, investigations and reviews is called the “Time Reference Date” (TRD). The day after the TRD is counted as day one (1). If the TRD is left blank, it will be the third (3rd) day after the last date of signatures of the parties on the contract. Be sure and know when your TRD is and make sure you complete ALL inspections, investigations and reviews of the property within this time frame. IF YOU DO NOT, YOU WILL BE ACCEPTING THE PROPERTY AS IS after this time period!
TRR stands for “Treatment, Repairs and Replacements.” After your inspections are completed within the time reference period your REALTOR® will help you complete a TRR form to be signed and dated and then presented to the seller with any requested treatments, repairs and/or replacements.
Make sure your REALTOR® provides you with a ‘Flow Chart for Inspections, Investigations and Reviews and Buyer’s Request to Seller to Make Treatments, Repairs or Replacements.”
A property abstract is a collection of legal documents which chronicles activities associated with a particular parcel of land. Generally included are references to deeds, mortgages, wills, probate records, court litigations and tax sales. Basically, an abstract includes all essential legal documents that affect the property.
The abstract will also show the names of all property owners and how long a particular holder owned it for as well as showing the price the land was exchanged for when it changed owners.
When you buy a home, you receive a deed to the property, meaning you are now the full legal owner of that property. Title insurance for real estate provides protection against loss if a covered defect is found in the title to real property. It is insurance for clear title from the day of closing backwards to the time of Statehood. You can purchase it for a one-time premium, paid in most cases at closing.
Title insurance usually covers four types of “hidden” risks: errors, liens, ownership claims, and invalid deeds. If a claim is made against your property, the title insurance company will negotiate with the other party to settle the claim, defend you in court if necessary, pay any incurred legal costs, and satisfy any covered claims. Having title insurance can save you time, money, even your home.
There are two types of title insurance policies available: an “owner’s policy” and a “lender’s policy.” A mortgage lender usually will require a borrower to pay for a lender’s policy of title insurance, to protect the lender against financial loss in case of title defect or failure of title to the property covered by its mortgage.
A lender’s policy does not protect the buyer, who must take out a separate owner’s policy of title insurance if owner wants title insurance protection in case the title to the property is defective. You should ask for an owner’s policy, or an owner’s attorney title opinion to protect you. When the lender requires a lender’s title insurance policy to insure title for its mortgage, an owner’s policy is available for an additional charge. The premium will be based on the higher amount that is insured.
"Title insurance policy" includes a preliminary report, binder, or commitment. For purposes of this definition, a commitment or binder means any written instrument, or verbal representation which creates an obligation (whether conditional or not) to issue a title insurance policy.
It may pay to shop for Title Insurance. Insurance rates are not regulated in Oklahoma. This means that Title Insurance rates may vary with Title Insurance Companies.
Has there been any damage to:
You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs within 3 business days of your application. The title company or other entity conducting the closing will tell you the required amount for:
A NOTE ABOUT PRORATIONS
Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.
On closing day, expect to sign a lot of documents and walk away with a big stack of papers. Here’s a list of the most important documents you should file away for future reference.
HUD-1 settlement statement.
Itemizes all the costs — commissions, loan fees, points, and hazard insurance —associated with the closing. (You may need it for income purposes.)
Truth in Lending Statement
Summarizes the terms of your mortgage loan, including the annual percentage rate and recision period.
Mortgage and Note
Spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.Deed
Transfers ownership to you.
Binding statements by either party. For example, the sellers will often sign an affidavit stating that they haven’t incurred any liens.
Amendments to the sales contract that affect your rights. Example: The sellers won’t move out until two weeks after closing but will pay rent to the buyers during that period.
Provide a record and proof of your coverage.
Boat Dock/Slip Bill of Sale
Provides proof of ownership of boat dock/slip.
Home Warranty Confirmation
You will need the confirmation number should you need to use the Home Warranty Policy.