What's Inside: Contract to Purchase

You've found the right home! Time to get with your agent and write up an offer. While differences in language will be found depending on your location, the basic parts of a real estate purchase contract are pretty similar across the board. Here's a run-down of the most important points to discuss.*

1. Purchase price: Seems like a no-brainer, right? Make sure that your offer is not so low that it offends the seller, but not so high that you have no room to negotiate. Talk to your agent about the current market conditions (More buyers than sellers? You may need to be aggressive.) and this particular property to arrive at a number that works for you.
2. Earnest money: While not required by law, in Ohio and many other areas it is customary for a buyer to offer earnest money as a show of good faith. This money is deposited in a special trust account by one of the brokers involved once the contract is final, and is held there until closing. Talk to your agent about what makes sense for the property you are interested in.
3. Financing: Making an offer contingent upon your ability to secure financing for the property is widely accepted. That means that if you can't find a bank to give you a mortgage, you won't be obligated to complete the sale. This is why it's a great idea to get pre-approved by at least one lender before making an offer.
4. Seller contribution: If you know that you're going to have high closing costs, or if you only have enough for the down payment without the other fees associated with buying a home, you may want to ask the seller to pay for a portion of your closing costs. Again, talk to your agent about this -- if it's a seller's market, it may be in your best interest to forget about this request.
5. Inspections: Unless you're an experienced home inspector, you should get a home inspection for any home you make an offer on. The contract will allow you to specify how long you have to schedule inspections, and how long you'll have to negotiate any repairs or credits with the seller. Your agent should know how busy local inspectors are to make sure you have enough time to get this done and carefully consider your options.
6. Inclusions & exclusions: Know what you're buying! Just because you saw appliances and window treatments at your showing doesn't mean that the seller plans to leave them for you. Make sure your agent has stated in the contract exactly which items you would like to be included in the sale.
7. Closing: The date of closing, when the property officially transfers ownership, is going to depend on clear title and loan approval. Your loan officer and your agent should be able to advise you whether the closing date should be 30 days away or longer; if you need additional time to sell a home or for school to let out, make sure you specify that in the contract.
8. Occupancy: It used to be customary in Ohio to allow the seller 30 days after closing to move their belongings out of the home, but today we're seeing more and more buyers requesting occupancy at closing due to liability concerns. Talk to your agent about what's customary in your area to determine what works best for you.

This definitely doesn't cover everything in the contract, but hopefully provides a nice summary of the big things to consider when making an offer. As with any legal document, you have the right to go over it with an attorney to ensure your rights are protected.

* I'm not an attorney, and this article is not legal advice. It merely describes what one might read in a real estate purchase contract.

Well, this is embarrassing...

The summer real estate market is definitely busier and hotter (sorry) than winter and spring! Amidst all the hubbub I seem to have neglected my blog; while it's super that I've been super busy with existing and new clients, I'd like to take a moment to breathe. Inhale. Exhale.

One part about real estate you don't often read about is how we're held accountable to the codes and laws that govern our behavior. Naturally, a client or another agent could report a violation*, but there is also what we call testing. Most frequently used to enforce fair housing violations, testing involves fair housing groups contacting agents or landlords, usually posing as prospective clients or a series of prospective clients, to ensure that the agent or landlord is following established guidelines...and that they follow those guidelines consistently for every client regardless of their status or class. There are several protected classes under Ohio law:

It is illegal, pursuant to the Ohio Fair Housing Law, Division (H) of Section 4112.02 of the Revised Code and the Federal Fair Housing law, 42 U.S.C.A. 3601, as amended, to refuse to sell, transfer, assign, rent, lease, sublease or finance housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status as defined in section 4112.01 of the Revised Code, ancestry, military status as defined in that section, disability as defined in that section, or national origin or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the provision of real estate brokerage services. It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons belonging to one of the protected classes. (Emphasis mine, Source)**

I'm pretty sure I was tested this week. I'll never know for sure, unless I made a mistake, but I was contacted by a woman who wanted more information on one of my listings, and expressed an interest in scheduling some additional showings with me that would include that property. I set up a custom MLS search for her, from which she chose her favorites (I don't usually recommend specific properties without showing someone all possible matches for the search criteria -- that could be construed as steering a client to or away from a particular area). I was just waiting for her to confirm the showings, which would have started tomorrow.

But today, her email address is no longer valid. I never got a phone number because I'm an idiot who forgot to ask for it, and when she called me it showed up "No Caller ID."

I was disappointed for about 30 minutes. No one likes to feel like they've done work for no reason. But then the testing theory occurred to me, and I realized that this could have been my chance to prove that I'm a friendly, honest, ethical agent who just wants to help someone buy a home. And that actually makes me feel pretty good.

P.S. If the person I'm writing about is an actual client and we've just had a communication breakdown, thank you for inspiring a blog post & give me a call when you have a chance!

* If you feel that an agent has treated you illegally or unfairly, you can report their actions to their broker, the local Board of REALTORS® (if they are a member), or the department in your state that governs real estate licensing. In Ohio, this is the Ohio Division of Real Estate & Professional Licensing.

** The Code of Ethics adopted by the National Association of REALTORS adds sexual orientation and gender identity to the above classes; those above are protected under federal or state law (or both). I'll save explaining that distinction for another post. 

Privacy forever!

Did you know that your real estate agent has a legal obligation to keep all details that are not public record regarding your sale or purchase private? Forever?

Public information varies depending on where you live, but in the Greater Cincinnati area the public has access to the following details about residential transactions:

• When you purchased or sold a property and to whom
• What the property taxes are on the property and whether they are current
• Your tax mailing address

In addition, real estate agents, lenders, appraisers, and other real estate professionals have access to some additional data. This is to assist us in making fair evaluations of properties and their values by providing us a more complete picture of how real estate transactions usually happen:

• The type of financing used to purchase a property (e.g. conventional, FHA, cash)
• The amount of time the property was on the market
• Any additional incentives offered as a part of the sale (e.g. seller-paid closing costs)
• Whether the property has any history of foreclosure action, even if it was resolved

Have I left anything out? If you have questions or comments about privacy in real estate, let me know in the comments!

The Story Behind This New Listing

Within walking distance of Beech Acres Park, this neglected Cape Cod had seen better days. My mother, a former Marine who grew up on a Michigan dairy farm, decided in January of this year that 1236 Burney Lane was a good candidate for her latest endeavor: making distressed properties livable again. Mind you, she has a full-time career in renewable energy, so some of the work -- including new plumbing, electrical, and custom carpentry -- was done by professionals. But my power-tool wielding mom definitely made her mark by re-designing the kitchen and baths, refinishing the hardwood floors, customizing the dining room cabinets, and tweaking everything until it was just right!

If you're in the market for a new home in Mount Washington, I hope you'll take a look at this one! We are not holding an open house this weekend because Sunday is MOTHER'S DAY, but feel free to schedule a showing with me or your favorite real estate professional.