Words Wednesday | Part 2

Words Wednesday

Part 2

It is very important to understand the terminology used during a real estate transaction whether you are buying or selling.  I will post a blog each Wednesday (Words Wednesday) with a few real estate terms.  If you have any questions or are ready to buy or sell, please do not hesitate to call or email me. Cheryl Clossick (734)709-1683 or cheryl@cherylclossick.com.

Offer:

Once you find the home of your dreams, your Realtor® will type up an offer.  This is a legal binding contract with things like (but not limited to): price, earnest money, contingencies, financing type, closing date, etc.  You and your Realtor® will discuss the value for each item.

Counter Offer:

If the seller does not agree with every part of your offer, they (via their Realtor®) will type up a counter offer with the terms they are willing to accept.  You then have the choice to accept as countered, re-counter or walk away completely.

Accepted Offer:

Once all parties agree and have signed all parts of the offer, it is considered accepted and all clocks start ticking.  This is where the listing will be updated to Contingent and is often referred to as “Under Contract”.

Earnest Money Deposit:

The amount of money the buyer puts down with their offer to show the seller that they are serious about buying the home.  It is usually at least 1% of the offer amount.  This money is held in an escrow account for the buyer and shown as a credit on the closing documents.

Contingencies:

A back out opportunity.  For example: If the contract was contingent upon a contractor’s inspection and the buyer is not satisfied with the inspection results, they can withdraw from the contract with not consequences.  There are 3 typical contingencies (contractor’s inspection, appraisal and financing).

Stay Tuned.  Next Wednesday we will go over Inspection, Appraisal, Financing, Mutual Release, Contingency Removal.

Please feel free to contact me about any of these terms or about your personal real estate needs.

Cheryl Clossick, REALTOR

Associate Broker, GRI, ABR, SRES, ePro, CRS, RCC, RSC, SFR

Exceeding Your Expectations, Neighborhood to Neighborhood, Because I Care

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