Buying a House: Making the Deal

Yes, you’re almost there. After all the shopping around, comparing notes, deciding which house is the best, getting loans, computing finances, you’re ready to make an offer. Once you make an offer and negotiate a deal, you’re just a few steps from owning the home you’ve always wanted. So can you expect when you’re in this stage of buying a house?

Contracts

Real estate purchase contracts are required to be in writing by the Statute of Frauds. Keep in mind that when you oral realty contracts are not admissible in court. This is obviously because written contracts thwart miscommunication, which are common with oral sales contracts, also called “handshake” sales contracts.


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There is no standard real estate purchase contract form. Each form is different and unique to another. Some states require forms and terms that should be found in residential sales contracts. However, this mandate does not prevent home buyers and home sellers from incorporating significant terms.

Review the purchase contract form thoroughly before signing it. Whenever there is something in the contract that you don’t comprehend, talk about it with your realtor. It is also essential that you double check the form to see that it includes the essentials. Here are a few tips to keep in mind:

o    Make sure you know who prepared the contract. A lot of forms made by the National Association of Realtors have clauses that are hidden. These clauses can be anti-seller, anti-buyer or both. The primary goal why these clauses are included is to have the sale closed at the soonest.

o    Have the guts to point out clauses that you don’t like. It doesn’t mean that you have to accept everything written on a contract just because the words are already there. You can always cross it out or alter and initial the change so you can have what you want. If you need to bring the form over to your lawyer, one who is experienced in real estate matters, then do so.

o    Work out the confusion. If you’re really determined to purchase a house, then do not allow the confusion to stay inside your head. The whole process can be confusing, and getting to the point where you have to read, understand and do the required paperwork can be overwhelming. If you don’t understand something, then don’t be ashamed to ask questions.

Affix your signature on a good printed residential contract. This means that you and the seller have reached a compromise that benefits you both. Watch out for forms that carries the name of the realty firm in the contract. They could be pro-agent. Be very cautious about hidden fees in brokerage-prepared contracts. Examples of these are fees for “preparing the document” in addition to the broker’s sales commission.