Going Over EVERYTHING
In North Carolina, we utilize a form known as the Standard Form 2-T Offer to Purchase (OTP) to draft offers for properties. Within this document, we meticulously outline critical details, including the buyer’s name(s), offer price, due diligence and earnest money amounts, financing type (unless an all-cash deal), down payment sum, loan amount, and more. We also specify responsibilities, such as who covers expenses like home inspections, termite reports, repairs, and home warranties. Additionally, we list items that are included in the sale, such as a security system, oven, or washer and dryer, while also noting excluded items, often pre-designated in the MLS listing. The OTP includes the requested sale timeframe and any applicable contingencies, like the need to sell your current home before finalizing the new purchase.
Determining What Price To Offer On The Home
Just as we conduct a comprehensive market analysis when determining a home’s value for listing purposes, we perform a similar analysis for the home you intend to purchase to establish its market worth. If comparable homes are selling for $650,000, it’s not advisable to offer $725,000 just because that’s the listed price. However, it’s essential to acknowledge that today’s market often sees properties selling for significantly more than their estimated values due to its high demand. Currently, it’s not uncommon for sellers to receive numerous offers on their properties, usually favoring the highest one. Since we can’t predict the amounts offered by other buyers, it’s crucial to submit your highest and best offer initially. An appraisal contingency provides some protection, allowing for an appraisal of the property within the due diligence period. If the appraisal value falls short, we can attempt to renegotiate the sales price with the seller. If unsuccessful, you’re not obligated to proceed with the purchase but you will likely lose your due diligence money. We can discuss this further. In some cases, the seller may request that you cover the difference between the selling price and appraisal in cash. Together, we’ll evaluate whether this is the right course of action.
Explaining Contingencies
Contingencies are straightforward concepts, akin to “If THIS happens, then THAT applies.” To illustrate, consider a real-life scenario: you agree to pay a babysitter $20.00 to watch your child from 7:00-11:00 pm. If she arrives an hour and a half late, breaching the original agreement, the $20 may no longer apply. Real estate purchases operate similarly. Some examples of contingencies are the need to sell another property or the need for the home to appraise prior to closing.
Share this on social media:
Going Over EVERYTHING
In North Carolina, we utilize a form known as the Standard Form 2-T Offer to Purchase (OTP) to draft offers for properties. Within this document, we meticulously outline critical details, including the buyer’s name(s), offer price, due diligence and earnest money amounts, financing type (unless an all-cash deal), down payment sum, loan amount, and more. We also specify responsibilities, such as who covers expenses like home inspections, termite reports, repairs, and home warranties. Additionally, we list items that are included in the sale, such as a security system, oven, or washer and dryer, while also noting excluded items, often pre-designated in the MLS listing. The OTP includes the requested sale timeframe and any applicable contingencies, like the need to sell your current home before finalizing the new purchase.
Determining What Price To Offer On The Home
Just as we conduct a comprehensive market analysis when determining a home’s value for listing purposes, we perform a similar analysis for the home you intend to purchase to establish its market worth. If comparable homes are selling for $650,000, it’s not advisable to offer $725,000 just because that’s the listed price. However, it’s essential to acknowledge that today’s market often sees properties selling for significantly more than their estimated values due to its high demand. Currently, it’s not uncommon for sellers to receive numerous offers on their properties, usually favoring the highest one. Since we can’t predict the amounts offered by other buyers, it’s crucial to submit your highest and best offer initially. An appraisal contingency provides some protection, allowing for an appraisal of the property within the due diligence period. If the appraisal value falls short, we can attempt to renegotiate the sales price with the seller. If unsuccessful, you’re not obligated to proceed with the purchase but you will likely lose your due diligence money. We can discuss this further. In some cases, the seller may request that you cover the difference between the selling price and appraisal in cash. Together, we’ll evaluate whether this is the right course of action.
Explaining Contingencies
Contingencies are straightforward concepts, akin to “If THIS happens, then THAT applies.” To illustrate, consider a real-life scenario: you agree to pay a babysitter $20.00 to watch your child from 7:00-11:00 pm. If she arrives an hour and a half late, breaching the original agreement, the $20 may no longer apply. Real estate purchases operate similarly. Some examples of contingencies are the need to sell another property or the need for the home to appraise prior to closing.
