What is the difference between list price, sales price and appraised value?
The list price is a seller’s advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area. The sales price is the amount of money you as a buyer would pay for a property. The appraisal value is a certified appraiser’s estimate of the worth of a property, (generally done for a mortgage by the bank at your expense). We as your Realtor can access all the recent comparable sales, listing and other data to help you make an informed decision.
Is a low offer a good idea?
While your low offer in a normal market might be rejected immediately, in a buyer’s market a motivated seller will either accept or make a counteroffer. A low-ball offer is a term used to describe an offer on a house that is substantially less than the asking price. While any offer can be presented, a low-ball offer can sour a prospective sale and discourage the seller from negotiating at all. Unless the house is very overpriced, the offer will probably be rejected. Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:
* Is the offer contingent upon anything, such as the sale of the buyer’s current house? If so, a low offer, even at full price, may
not be as attractive as an offer without that condition.
* Is the offer made on the house as is, or does the buyer want the seller to make some repairs or to lower the price instead?
* Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.
What are the standard conditions (subjects)?
Most purchase offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyers’ ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. Approving title, getting fire/property insurance are also essential in
most cases. As a buyer, you could forfeit your deposit under certain circumstances, such as backing out of the deal for a reason not stipulated in the contract, or after your subjects are removed.
Who removes the conditions (subjects)?
You do. Your Realtor will gather information and ensure your protection, but ultimately you make the decision on removing the subjects and making it a firm deal. Empower yourself, and get as much information direct from the source as possible on your own (i.e. talking to the city, the strata manager, the building inspector etc.). You will feel much more informed and comfortable with the transaction.
What does “Agency” mean?
REALTORS® work within a legal relationship called agency. The agency relationship exists between you, the principal, and your Brokerage, the company under which the individual who is representing you, is licensed. The essence of the agency relationship is that the Brokerage has the authority to represent the principal in dealings with others. Brokerages and their Licensees are legally obligated to protect and promote the interests of their principals as they would their own.
What is an “Exclusive Buyer’s Agency” Agreement?
It is recommended that the relationship between the buyer and the real estate brokerage should be in writing in the form of a Exclusive Buyer’s Agency Contract. This will ensure that both parties will have a complete understanding of their rights and responsibilities. Each party will know what they can expect from the other and what is expected from them. This is similar
to the common practice of sellers entering into a listing contract when selling a property. Real estate brokerages cooperate with each other to bring buyers and sellers together. This cooperation will help bring you the best selection of properties which meet
your individual requirements.
Do I need an attorney when I buy a house?
Most home buyers are capable of handling routine real estate purchase contracts as long as they make certain they read the fine print and understand all the terms of the contract. In particular, you should be clear on the terms of any contingency clauses that will allow them to back out of the contract. It is always advisable, however, to have a lawyer give advice on a contract. In
looking for an attorney, ask friends for recommendations or ask your real estate agent to recommend several. At the time of conveyancing, either a notary or lawyer will be involved to transfer title and funds.
