There is generally no language explicitly preventing the buyer from changing things up. There is usually no risk or consequence for the buyer to find new financing — as long as they can get financing within the timeframe specified by the contract. Most contracts do specify that buyers have a specific time period within which they have to get financing and perform.
You will need to contact a local Home Inspector to schedule your inspection prior to your inspection deadline. Here is a list of our preferred vendors for your reference - but you are welcome to use any company you'd like!
If you are unclear on which inspections to schedule, let our Transaction Manager know and they will clarify what is stated in your contract. Typically you will need to schedule a home inspection, termite and radon. Here is a helpful article on the inspection process.
You will need a homeowner’s insurance policy in place before settlement, it is a good idea to start looking around now. Obtaining homeowner’s insurance is typically a requirement of the lender in order to secure financing.
Aaron Mormann with State Farm is my insurance agent and he is great. You can find his info here
Your lender will coordinate the appraisal appointment. If you have an appraisal contingency, once we receive the report we will work with you to negotiate depending on the outcome. You will receive the appraisal report from your lender and we suggest saving it for your records.
Closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. Closing is the point in time when the title of the property is transferred from the seller to the buyer. Closing costs are incurred by either the buyer or seller.
Closing costs vary widely based on where you live, the property you buy, and the type of loan you choose. Here is a list of fees that may be included in closing. The list is inclusive of fees you may see, but it’s not likely that your loan will include all of the fees listed here.
A post settlement occupancy agreement allows a seller to continue to live in his home after settlement, under an arrangement where the seller is essentially renting the home back from the new purchaser.
This type of arrangement can be a life-saver for a seller who is purchasing another home but won’t be able to close on that purchase until a few days or weeks after he sells his current home.
One thing a buyer should do before agreeing to allow the seller to rent back after closing is to check with his lender to see whether the lender will permit it.
Typically lenders will allow a short rent back. For anything longer, the buyer could be in violation of the covenant in the loan documents that states that the property will be owner-occupied.
All parties on the contract must attend the settlement in person. If any of the parties are unable to attend, please let your Transaction Manager know as soon as possible.
We recommend scheduling your walk through the night before or the day of settlement. Our Transaction Manager will help coordinate both the settlement and walk through dates.
At the Final Walkthrough you and your agent will go through the home one last time to make sure the home is in the condition you agreed to buy (since date of contract acceptance). This is not a secondary home inspection- it is to ensure everything is in working order before you take possession at settlement. You can expect to be there approximately 20-45 minutes (depending on the size of your new home).
Deposit your earnest money with the Title Officer within 5 days of the date of contract acceptance/ratification date. The best option is to either drop it off in person, mail it to them, or call the office directly for wiring instructions.
Please make sure you write the address of your new home and “EMD” in the memo portion of the check to be sure it is credited correctly in the escrow account. For more information on the Earnest Money Deposit read this blog article.
A deeper dive into the frequently asked questions regarding the home inspection process, report and repair requests.
Generally if something is broken or defective, safety related, or not working efficiently/properly the buyer and their agent should seek a remedy. A few examples include:
· Smoke, carbon monoxide, and radon systems (if radon fails inspection)
· Broken appliances
· Leaks of any kind
· Electrical faults, hot panels, and incorrect wiring
· Broken or missing door and window locks
· Faulty garage door sensors
This is a negotiation. A buyer can ask for any repair. The seller can agree to make or not make the repair(s) or offer a credit which effectively reduces the cost of the home. The seller can also make no repairs and offer no credit.
Simply being old is not justification for a credit or repair. It is not uncommon for older systems (HVAC, Roof, etc) to be in perfectly normal working order. However, if there is evidence of defects, inefficiencies, or ongoing repairs it is reasonable to seek a cure. A few examples include:
· Rust inside of an HVAC system
· Active or recent roof leaks
· Windows that won’t open and close
· Appliances with broken components
Even the best inspectors can’t inspect what they can’t see. The best advice we can offer is to hire a trusted inspector.
During a routine home inspection, the technician will look at the most accessible parts of the chimney including the overall structure, fireplace, and damper. However, they simply can’t see the entire interior without specialized equipment. It is common practice for the home inspector to recommend a Level 2 chimney inspection which uses video to inspect the internal area of the chimney not visible otherwise.
A home inspector is like a detective; they systematically inspect a home for explicit defects. During the process they may see signs of possible issues for which they are unable to conclusively determine if there is a defect or not. Should this happen, the inspector may suggest an additional, specific inspection. One example where this often happens is with chimneys.
We will work closely with you to estimate the cost/value of repairs. For specialized or less common repairs, we will suggest asking an expert within that particular field for an estimate.
We generally recommend to buyers that we should first seek a remedy to home inspection. On occasion, that isn’t possible. Ultimately, the buyer has the option of voiding the contract prior to the specified deadline as agreed to in the sales contract and would be owed the Earnest Money Deposit.
Please reach out with any questions and know that we will work together through this process.
Radon is a colorless, odorless, radioactive gas. It forms naturally from the decay (breaking down) of radioactive elements, such as uranium, which are found in different amounts in soil and rock throughout the world. Radon gas in the soil and rock can move into the air and into underground water and surface water.
The EPA recommends that all houses, regardless of what radon zone the house is located in, be tested for radon during point of sale. The most common procedure for radon testing during real estate transactions is for the potential buyer to request the radon test as part of the overall home inspection. The radon test is generally a separate service and must be requested. If the radon test is 4 pCi/L or greater, the EPA recommends the potential buyer negotiate with the seller to have a radon mitigation system installed with the stated goal of bringing the radon level in the home below 4 pCi/L.