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Whether you are a first time buyer or an experienced investor, you will find useful information about how to choose the "right" property, making an offer, negotiating, financing, mortgage rates, moving, and everything involved in making an informed real estate decision in today's market.
Econimic and Market Watch Report (4th Quarter 2005)
TYPICAL HOME PURCHASE PROCEDURE
FAIRFIELD, COUNTY, CONNECTICUT
Step 1:
To comply with the Law, the potential buyer must sign a Exclusive Buyer Broker Agreement with your agent. Please review the "Disclosure of Real Estate Agency Relationships" (agents must obtain a fully executed Buyer Broker Agreement prior to commencing work with a client. This is not the policy of William Raveis Real Estate but it is THE LAW.)
Step 2:
In negotiating the purchase of your new home, the initial step will be to instruct the real estate agent to make an Offer to Purchase. A binder and a check (1% of the purchase price) are presented to the seller. The 1% check is deposited only upon acceptance of the binder and will be held in our trustee account.
The binder (Offer to Purchase) includes the following:
- Your opening dollar offer.
- Closing and all other dates that apply.
- Contingencies, including obtaining a mortgage, all inspections.
- Any personal property, included or excluded.
The binder plus the sellers Home Disclosure Form, Buyer Broker Agreement and copy of the 1% check will be submitted to the listing agent, then negotiation begins. Upon mutual agreement of price, terms and conditions, all signatures are necessary (sellers and buyers) to form a fully executed offer/contract. If offer is not acceptable to the seller, further negotiations are necessary to reach the terms agreeable to both buyer and seller.
Step 3:
- All inspections that are applicable are arranged such as: building, termite, well, septic, radon, pool, tennis court, lead paint, etc.
- The buyer immediately applies for financing.
- The seller arranges with his or her attorney for the drawing of the Contracts of Sale, based on the agreed terms.
- Buyer selects attorney. In Connecticut, banks will generally only release funds to an attorney. It is customary to be represented by counsel.
Step 4:
The Contract of Sale (a legal document binding both parties) should be prepared by the seller's attorney and forwarded to the buyer's attorney. It is reviewed by the buyer (and his or her attorney) and signed, usually within 10 days following acceptance of the offer. The additional 9% of the purchase price is due when signing contracts. The 1% held in our trustee account is released upon buyer attorney's approval to the sellers attorney prior to closing. Checks you take to the closing will be certified or bank checks. Your attorney will instruct you as to the exact amounts. After both parties sign the contract, the buyer's attorney arranges the title search and all other preparations necessary for the closing or passing of title.
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