Posted by admin on Feb 24, 2010 in Naples Homes Blog | 0 comments
Writing an Offer – Safeguards Regarding the Property
Before closing, the buyer should revisit the property to ensure it is in the condition you required in your offer and to inspect any required repairs have been performed.
The closing or settlement company should not close until you or your Realtor give them the final go-ahead. Make sure this right to do a final inspection is included in your offer to purchase the home.
Ideally, the final walk-through inspection should be done a few hours before closing after the seller has vacated the property. Any damage by movers or garbage should be removed from the property by the sellers. Stipulate these items in your offer and if there is a problem before closing it can always be remidied by crediting money to the buyer on the closing statement for items that are not completed per the contract.
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 4 comments
Besides an appraisal and the termite inspection, you should also have a professional home inspector go through the house and seek out potential problems. Of course, you will have inspected the home, but you are not used to looking at some things that a professional will find. Even if they are not things the seller is expected to repair, at least you will have foreknowledge of any potential problems.
The seller will want this inspection performed quickly, usually within 15 days in Naples, Florida and Collier County, so that you can move forward with the purchase. Once you receive the inspection, you will want to allow yourself sufficient time to review the report and respond accordingly.
If you do not approve the report, you must respond to the seller according to the terms of your contract. Watch all effective dates carefully and do not wait until the last minute.
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 0 comments
Writing an Offer – Safeguards Regarding the Property Condition at Closing
The last thing you want when you assume possession of your new home is to find it in a total mess. Therefore, you should make it clear in your offer that certain minimum standards are required on closing. If you do not, you might find out the seller or neighbors have begun using the back yard as a trash dump, or something worse – and you would not be able to do anything about it.
Some of the requirements you might want to include in your offer are that the home be in the same condition it was at your final walk-through. There should be no garbage left behind and any damage done during moving out should be repaired. In the best case scenario, a final walk through should take place when everything is moved out and just prior to closing – earlier the same day if possible.
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 4 comments
Writing an Offer – Seller’s Disclosure Statement
Although you have toured the property, looked at the walls and ceiling, turned on the faucets and played with the light switches, you have not lived in it. The seller has a lot more knowledge about his or her home from living there. For this reason, you may want to ask if the seller has filled out a “Seller’s Disclosure Statement” or if not, require it as part of your offer.
Basically, you want the seller to disclose any adverse conditions that may have a substantial impact on your decision to purchase the home. This would include any problems with the house, whether the property is in a flood zone or any other kind of hazardous area.
In Naples, Florida and Collier County a Seller’s Disclosure Statement is expected but not required by law. A seller my chose not to provide the written form to buyers but that doesn’t exclude them from disclosing any known facts that may effect the value of the property according to State laws.
In Johnson vs. Davis, the Florida Supreme Court ruled that, “where the seller of a home knows of facts materially affecting the value of the property which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them to the buyer.” The seller may disclosure facts in writing or verbally.
In addition, in Rayner vs. Wise Realty Co. of Tallahassee, the First District Court of Appeal ruled that this same disclosure requirement applies to residential properties that are being sold “as is.”
Mark C. Weber is a Naples Realtor, Broker & Owner of White Sands Realty in Naples, Florida. He is a 30+ year resident of Naples and specializes in finding people Naples homes on or near the beach and waterfront. If you are interested in Naples real estate or have a question about this article please contact him through
Email or by calling 239-417-1115.
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 2 comments
Closing On Your Home
A transaction is considered “closed” once all documents have been signed, money transferred and the deed has been recorded. Then you own the home.
On the day of closing (or prior to if you are doing a mail away closing), the closing agent will provide you with a finalized Settlement Statement and HUD-1 which will list closing costs, pro-rations and any money you owe the seller or the seller owes you.
Once you review all the documentation, you’ll sign any mortgage documents and promissory note if you have a loan and the seller will give you the title to the house in the form of a signed deed.
Money will exchange hands, usually in the form of a cashier’s check or wire transfer, and the deed and mortgage will be recorded. At that point, possession has transferred to the buyer and become a homeowner.
What Do I Receive At Closing?
- Copy of the signed Settlement Statement, HUD-1
- Truth in Lending Statemtn
- Mortgage Note
- Mortgage Deed of Trust
- Sales Contract (you should already have a copy)
- Keys to Your New Home & Garage Door Openers (if applicable)
- The Actual Deed Will Be Mailed to You (This may take several weeks)
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 0 comments
Offering to Purchase Real Estate- the Basics
It is absolutely essential that you include a closing date as part of your offer to purchase real estate. This is an important date in the contract and should not be considered lightly.
If you’re obtaining financing and a mortgage approval, allow as much time as possible. With today’s stringent mortgage qualifications, 45 days is the minimum time you should have from the effective date to the closing date on the contract.
Both you and the seller can make plans for moving, and the seller can make plans for buying his or her next home based on the closing date you have both agreed to in the contract.
Though most transactions actually do close on the right date, occasionally extensions are needed because of mortgage financing delays. Most times these delays are not the fault of the buyer.
There are also times when closing can be delayed due to acts of God, such as a hurricane or natural disaster. Have back-up plans prepared for such a contingency.
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 4 comments
An earnest money deposit is the initial deposit you make with an offer to purchase real estate.
How Much Should You Put Down With Your Offer?
After you have come up with an offer price, the next step is to determine how large a deposit you want to make with your offer. Determining what to put down on a home depends on your offer strategy. You want the earnest money deposit to be large enough to show the seller you are serious, but not so large you are placing significant funds at risk.
One recommendation is to make sure your initial deposit for a thousand dollars and then include a second deposit after the inspection is complete for the balance of 10 to 20 percent. This shows the seller you are willing to put up an significant amount once the inspection is complete, but you aren’t willing to risk that much until you are sure the home is in decent shape.
At other times, your strategy may be different when you are trying to get a significant discount of the list price of a home for sale. Since large deposits do impress sellers, you may find that by making a larger deposit that normal you can convince the seller to accept the lower offer. More money up front may save you money in the end.
Also, during a hot market there may be multiple offers on the property that interests you. A large deposit may impress a seller enough so they will accept your offer instead of someone else’s, even when your unknown competitor is offering the same price or slightly higher.
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 3 comments
In most purchase transactions there may be a slight challenge or two, but most things will go quite smoothly. However, you want to anticipate potential problems so that if something does go wrong, you can cancel the contract without penalty. These are called “contingencies” and you must be sure to include them when you offer to buy a home.
For example, some “move-up” buyers often agree to purchase a home before selling their previous home. Even if the home is already sold, it is probably a “pending sale” and has not closed. Therefore, you should make closing your own sale a condition of your offer. If you do not include this as a contingency, you may find yourself making two mortgage payments instead of one.
There are other common contingencies you should include in your offer. Since you probably need a mortgage to buy the home, a condition of your offer should be that you successfully obtain suitable financing.
Another condition should be that the property appraises for at least what you agreed to pay for it. During the escrow period you are likely to require certain inspections. A must have contingency is that the home should pass those inspections.
Basically, contingencies protect the buyer in case you cannot perform due to one or more of the items mentioned above. If you cancel a contract without having built-in conditions and contingencies, you could find yourself forfeiting your earnest money deposit and with a lawsuit on your hands.
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 0 comments
Once you find the home you want to buy, the next step is to write an offer – which is not as easy as it sounds.
Your offer is the first step toward negotiating a sales contract with the seller. Since this is just the beginning of negotiations, you should put yourself in the seller’s shoes and imagine his or her reaction to everything you include.
Your goal is to get what you want and imagining the seller’s reactions will help you attain that goal. The offer is much more complicated than simply coming up with a price and saying, “This is what I’ll pay.” Because of the large dollar amounts involved, especially in today’s litigious society, both you and the seller want to build in protections and contingencies to protect your investment and limit your risk.
In an offer to purchase real estate, you include not only the price you are willing to pay, but other details of the purchase as well. This includes how you intend to finance the home, your down payment or earnest money deposit, who pays what closing costs, what inspections are performed, closing date, whether personal property is included in the purchase, terms of cancellation, any repairs you want performed and how to settle disputes should they occur.
It is certainly more involved than buying a car. And more important.
Buying a home is a major event for both the buyer and seller. It will affect your finances more than any other previous purchase or investment. The seller makes plans based on your offer that affect his finances, too. However, it is more important than just money. In the time it takes you and your Realtor to write an offer you are making decisions that affect how you live for the next several years, if not the rest of your life.
The seller is going to review your offer carefully, because it also affects how them tremendously as well. That may sound dramatic or cliché, but real estate purchases are serious business and not to be taken lightly. Put a lot of thought into each part of your offer and ask your Realtor or real estate attorney if you have any questions.
Mark C. Weber is a Naples Realtor, Broker & Owner of White Sands Realty in Naples, Florida. He is a 30+ year resident of Naples and specializes in finding people Naples homes on or near the beach and waterfront. If you are interested in Naples real estate or have a question about this article please contact him through
Email or by calling 239-417-1115.
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Posted by admin on Feb 24, 2010 in Naples Homes Blog | 3 comments
Major Factors Influencing your Offer Price
Comparable sales information helps you to determine a base price range for a particular home. Adding in the various factors like property condition, improvements, market conditions, and seller motivation help determine whether a “fair” price would be at the upper limit of that range or the lower limit. Perhaps you will feel a fair price is outside of that price range.
The price you put in your offer to begin negotiations is totally up to you and depends on your negotiating style. Most buyers start off somewhat lower than the price they eventually want to pay.
Although your agent may provide advice and guidance, you are the one who makes the decision. The price you put in the offer is totally up to you, but beware that an offer that is too low can offend a seller and they will make no counter-offer. At that point your only option is to come way up close to what the asking price is in hopes they will consider your offer a second time around.
Ask your Realtor what the average percentage off the list price that homes are going for in the area. He will have access to this information through his local MLS. If you find out that homes are selling for about 8% off the list price, your best best is to shoot for that number a the end of the negotiations. That may mean offering 12% to 15% initially – but in the end it’s up to your best judgement.
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