When it comes to purchasing real estate in Santa Rosa, many people seem to think they just need to make the best offer price to buy a property. However, the purchasing process is much more complicated than that. Many things must take place before ownership of a property can legally change hands.
If you are not careful, you could end up entering into a bad faith contract, losing money on a property that is unsellable, dealing with complications that prolong the length of time it takes for you to close the deal or becoming involved in a real estate contract dispute. Here are some key elements that your real estate purchase contract should have.
Seller assistance
If you want the seller to pay a portion or all of the closing costs, be sure to make that request in your offer. Detail the type of transaction the money is to be used for. For example, if you want the seller to pay escrow or notary fees, you must specify that in the contract. You should include the exact amount or percentage in the contract to prevent confusion and issues.
Time to close
Think about how long you want the closing process to take. Real estate closings often take as little as 30 days and may take as long as two months. To determine the best closing time frame, think about your current living situation and the seller’s. Some sellers need extra time to move. Some renters need less time because their leases may be up. Try to give yourself as much wiggle room as possible to prevent delays and issues from coming up during the closing process.
Financing
One of the most important aspects of any real estate contract is the financing terms. If you plan to obtain a mortgage for your home purchase, you will need to include that information along with the interest rate you can comfortably afford. Be as specific as possible with the financing information so you can avoid losing money if you are not able to follow through on your offer. If you plan to pay cash for a property, make a note of it in the contract so the seller knows what they can expect as far as payment.
The above list is not all-inclusive. There are other items you should include in your real estate offer contract that can help you avoid complications, keep you from losing money and improve your chances of beating out all other offers. Anyone who is interested in purchasing property may benefit from the advice of an attorney for guidance on how to draft their offer and the purchase process.
