Your realtor can steer you in the right direction to get pre-approved
before making an offer. Knowing what your financial boundaries are is
fundamental. A pre-approved mortgage commitment has many advantages to
you and your realtor such as:
Your agent won’t waste time looking for properties that you have no
hope of purchasing.
Any seller will give serious consideration to your offer because
they know you are sincere.
Your bargaining position is stronger. A Seller might take your
offer, even if it’s a couple of thousand less, because they know
you have the financial backing to close the deal.
Get the Property Condition Disclosure
Sellers usually fill out a Property Condition Disclosure that lists all
the non-real property included in the sale and very important
information about the condition of the property. All you have to do to get
this report is ask.
A few examples of what the Property Condition Disclosure spells out
are:
The overall condition of the property.
What appliances are included and if they are in working condition.
The personal property included in the sale, such as curtains or
lawn ornaments.
The condition of the water and sewer system, including the source
of household water.
The condition of the roof, walls, floors, and foundation.
The condition of the heating and/or cooling systems.
This Disclosure protects the Seller and the Buyer against future
problems. Casually ask your agent about their ‘Errors & Omissions’
insurance. The question informs your agent that if a problem was deliberately
hidden before the sale, you have legal options to solve the problem.
You agent will dig for all the dirt knowing that anything less than full
disclosure could cost them money down the road.
Get a Mold Disclosure & a Lead-Based Paint Disclosure
Mold in a home can make you and your family sick, prevent you from
getting insurance on your home and cost tons of money and time to get it
out of your home.
If the home was built prior to 1978, it may have lead paint. This
could be a problem if you have young children or if you are going to do
extensive remodeling.
Earnest Money
When making an offer, you will be required to put down earnest money.
Usually Earnest Money is around $500 to $1,500. It can be up to 5% of
the purchase price in some instances. Earnest Money is held in a Trust
Account until both Seller and Buyer are in agreement and close (you
actually purchase) the property.