Below you will find the most frequently asked questions about real estate by home sellers.
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An Active Property
The property is actively for sale and on the market. The sellers may have received offers but have not accepted any yet.
When an offer is accepted the property will become Pending the completed sale.
If the contract falls through, typically the property will go Active again.
What does As-is mean?
A contract or offer clause stating that the seller will not repair or correct any problems with the property. Also used in listings and marketing materials.
What is a backup offer?
When an offer is accepted contingent on the fall through or voiding of an accepted first offer.
Buyer’s agent: The agent who shows the buyer’s property, negotiates the contract, or offer, and works with the buyer to close the transaction.
Closing: The end of a transaction where documents are signed, and funds are dispersed.
See also Close of Escrow.
In real estate, a contingent offer is an offer made on a property, which says that certain conditions must be met in order for the sale to be completed.
A real estate contract is a legally binding agreement between two parties for the sale and purchase of a property.
It outlines the price, terms, and conditions of the sale.
A counteroffer is a response to a buyer’s original offer on a house to make changes that better fit a seller’s goals.
A counteroffer is one step closer to an accepted offer!
A counteroffer shows that the seller is willing to work with the buyer, but on slightly different terms (usually a change in the price or contingencies).
Here’s how your real estate agent can help you navigate a counteroffer:
☑️ Buyers, we negotiate on your behalf and provide guidance on how to get your offer accepted.
☑️ Sellers, we help you stay clear of red flags and make sure you accept the right offer.
Negotiation is a BIG part of what we do as real estate pros! Connect with our team to learn more about how we provide 5-star representation for our clients.
Days on market (DOM) means the number of days a home has been listed on the market.
The number of days the property has been on the market may reflect the desirability and/or pricing of the home.
If the home has been on the market too long, the property may be stale.
What is a Disclosure Statement? 🤔
A legally binding document in which the seller reveals any potential flaws and issues the buyer needs to know about the property.
Also known as a “Seller’s Disclosure,” this is a legal document that outlines any known flaws that a home seller is aware of that could negatively impact the home’s value 🏡
💡 TIP: Buyers should scrutinize this document closely with their real estate agent to fully understand the condition of a home.
Our best advice? When it comes to buying a home, make sure you get an inspection to confirm what has been disclosed is accurate and discuss any potential deal breakers with your agent.
The three rules of this document are disclose, disclose, disclose.
The representation of opposing principals (buyers & sellers) at the same time.
That is, one real estate agent represents both the buyer and the seller in one transaction (sale of a home).
What is Earnest Money? 🤔
A deposit made to a seller that represents a buyer’s good faith to buy a home. It’s typically around 1% – 5% of the sale price.
Earnest money is a deposit from the buyer to the seller, made in good faith to show dedication to purchasing the property 🏡
IMPORTANT FACTS 👇
💰 The amount varies by market
💰 Goes towards the purchase of your home
💰 Protects the seller if a buyer backs out
💰 A buyer may get this money back – due to failed inspections or contingencies
💡 TIP: In a seller’s market, you may consider making your earnest money non-refundable.
Our best advice? When it comes to buying in a low inventory, competitive market, it’s essential to partner with a Buyer’s Agent who understands how to make your offer stand out to sellers 🥊
What is an Offer to Purchase in real estate? 🤔
When does it come into play? And what does it entail?
An Offer to Purchase – usually just referred to as an offer – is a written document submitted by a prospective buyer to a seller that outlines the terms of the sale.
You’ve probably heard someone say:
We just put in an offer to buy our first home.
The buyer’s agent will be the one to submit the offer to the seller’s agent. The seller’s agent will then bring the offer to the seller.
It can be submitted at any time during the negotiation process, but it usually occurs after the buyer has made an initial offer and the seller has accepted it.
The Offer to Purchase should include all of the terms of the sale, including the purchase price, the down payment, the closing date, and any contingencies.
Once the offer is accepted, you are “under contract” to purchase the home, pending any contingencies.
Below is an example of an Offer to Purchase Real Estate.
Define Real Estate Professional.
An individual who provides services in buying and selling homes.
Real estate professionals are there to help you through the confusing paperwork, find your dream home, negotiate any of the details that come up, and so you know exactly what’s going on in the housing market.
There are several types of real estate professionals including Realtors®, real estate agents, and real estate consultants.
What are Seller Concessions?
Incentives to motivate buyers to purchase a home.
Once you have made your offer and the offer is accepted by the seller, the following questions may arise.
What does “under contract” mean?
Under contract means that all parties have agreed on terms, have signed the contract, and the signed contract has been delivered to both buyer and seller. Payment of the escrow deposit is expected but is not a requirement to make a binding contract.
What is escrow?
The escrow money, escrow deposit, or good faith deposit is money that is included with an offer, or as soon as an offer is accepted, to show the seller that you are serious about moving forward with the purchase of the home.
Because you forfeit this deposit if you back out of the purchase for any reason not allowed for in the contract, the larger the escrow deposit, the more seriously your offer is taken.
This is not the same as the down payment.
Do I need an inspection?
We always recommend that you have a home inspection done. In the grand scheme of things, paying a few hundred dollars to have peace of mind that there are no hidden dangers or problems is well worth the money.
The inspections you may need or want will vary depending on the home you are buying and the contract terms. Your agent will thoroughly discuss the inspections with you once your offer is accepted.
How much are inspections?
The cost of the home inspection depends on the size of the house and additional inspections requested, such as swimming pool, septic tank, termite/pets report, insurance, four-point (HVAC, plumbing, roof, and electrical,) wind mitigation, and radon. An average home inspection, without additional inspections, is about $300.
I will give you my recommendations for inspectors, but you can choose your own if you wish.
What if my loan doesn’t get approved?
If you have gone through the pre-approval process and have been forthcoming with all the information requested by your lender, it’s unlikely you will be turned down, but it does happen.
Make sure you do not change jobs, purchase big-ticket items on credit, take out a car or boat loan, or open any other new credit accounts while your mortgage is being processed.
If your loan does fall through, talk with your lender about changing to a different loan type.
When can I start moving?
When you have the keys! When you are financing your purchase, it takes four to six weeks for your loan to be processed. Once the lender gives the all-clear, closing is scheduled. You will sign your loan documents and both parties will sign documents transferring ownership to you.
Unless other arrangements have been agreed upon by both parties, the sellers should have completely vacated the home when they sign the closing papers. You can have your belongings ready to move, and a moving company scheduled before you go to closing.
At closing, you will receive the documentation you need to provide utility companies with proof of your new residence.
