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Buyers
Buying a home is a long term financial commitment with great personal and tax advantages. There are costly mistakes to avoid in the process. Using an attorney to review the complex paperwork involved in the purchase of a home can save you money. Financing, tax questions and contract issues can be explained to you in a straightforward manner. There are many steps and different stages of a home purchase where it is advantageous to get the right advise. The process includes finding a home, making an offer, negotiating a fair price and the purchase and sale agreement, financing and the closing.Through the MLS (Multiple Listing Service), you will have full access to ALL homes available in the communities in which you are interested.
My knowledge of the communities in Hampshire and Franklin counties will be invaluable to you in terms of real estate law, schools, neighborhoods, local economy, and more.
The first consideration in buying a house is the house itself.
What do you want? Basic things to think about are:
- Location - Consider the area. Is it close to what you need? (Highway access? Schools? Parks? Stores? Church or Temple?) Is it the type of neighborhood you would be happy to live in? Is it convenient to where you work?
- Structure - Is the house well built? Will it accommodate the needs of your family? Are there enough bedrooms and bathrooms? Do you like the layout of the house?
- Resale - It's important to realize that the average time that people live in a house is only 5-7 years, which means that someday, you'll be likely to want to sell the house you are now considering buying. Does this house have good general appeal?
Making an Offer
When you have found a house that you want to buy, you begin by making an offer. When you make your initial offer, you will put down a deposit (generally $500.00) to show good faith. That check will not be deposited until your offer is accepted, at which point it is put into an escrow account. This deposit will count towards your down payment.
Negotiation
If you offer less than the asking price, three things can happen. First, the sellers may accept your offer. Second, the sellers may reject your offer entirely and not respond to you. (This can occur if you have insulted them with an offer that is significantly lower than the value they place on their home.) Third, and most commonly, they will make a counter-offer. From this point, you can walk away, accept their offer, or make them a counter offer. This process continues until you come to agreement or determine that you can't come to agreement.
An Accepted Offer
After your offer is accepted, you should hire a lawyer to negotiate the details of the Purchase and Sale Agreement. If you buy a property through Norwottuck Realty Company, Attorney Lieberman will represent you and the legal services associated with the closing are included in the commission.
Norwottuck Realty Company will handle:
Negotiation of the Purchase and Sale Agreement - You will sign a Purchase and Sale Agreement (also known as the P&S) within 10 days of the acceptance of the offer. This document lays out in detail every aspect of the transaction. When you sign the P&S, you will make an additional deposit which will also be held in escrow and applied to your downpayment. Norwottuck Realty Company will help you negotiate the details of the P&S.
Inspection- Norwottuck Realty Company will arrange for a structural inspection of the house immediately after the signing the acceptance of the offer. It is prudent to have this inspection as early as you can and before the signing of the P&S, so that the seller is not holding a larger deposit. If the inspection reveals anything about the house that you are not pleased with, you can attempt to renegotiate with the seller or you can withdraw from the purchase and have all deposits returned to you.
Financing- You will apply for your mortgage. The bank processes your loan application. In addition to making sure that you are a good risk for a mortgage, they must determine that the house is a good risk. This means having an appraiser verify that the house is worth what you and the sellers have agreed upon. The process of approving and then writing a mortgage generally takes about four to six weeks. Attorney Lieberman of Norwottuck Realty Company has extensive knowledge of all aspects associated with mortgage financing and can assist its customers in determining their best financing option.
Title Examination- Attorney Lieberman will review the title to determine if the property is free and clear of liens and encumbrances.
Closing- Attorney Lieberman will attend the closing and review all paperwork the Buyer is required to sign. Title insurance is required by all lenders for the full amount of the mortgage to protect the buyer against title defects. Attorney Lieberman will arrange for the purchase of title insurance. The bank and Attorney Lieberman will release the funds to the sellers, and when you're done at the bank, you are a homeowner!
These things happen more or less simultaneously. Don't worry! Norwottuck Realty Company will be there to help!
Normal Buyer’s expenses include:
- attorney's fee, including negotiations, drafting documents (INCLUDED IN COMMISSION)
- cost of the title examination (INCLUDED IN COMMISSION)
- recording fees for deed, mortgage, and municipal lien certificate
- miscellaneous expenses, such as certificate of municipal liens, plot plan, title insurance, bank application fee, points and other finance charges, if any of these are required
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