eBook Chapter 6. Buing Your Katy-Cinco Ranch-Richmond Area Home for the Best Price. The Purchase Contract.The Purchase Contract

Buying Your

Katy-Cinco Ranch-Richmond Area Home

For The Best

Price!

Chapter 6
Fred Miller, Realtor serving Katy, Cinco Ranch, Pecan Grove, Richmond,Westpark Tollway, Fulshear www.RichmondKatyHomes.com

What Clauses You Might See In Your Purchase Contract For Your New Home

Just so you will know what to expect below are a few of the primary clauses that will be in your Residential Contract (Resale). Each clause may be different for each person to some degree. Unless an attorney is employed all agents use the contract promulgated by the Texas Real Estate Commission.

Paragraph 3 shows the amount of cash to be paid at closing, the amount to be financed and the total sales price.

Paragraph 4 and the Third Party Financing Condition Addendum spells out the financing conditions under which you are willing to purchase. That is, the contract is subject to your being able to obtain financing under these minimum conditions; if these conditions are not met you can cancel the contract and get your Earnest Money back.

"Third Party Financing: One or more third party mortgage loans in the total amount of $____. If the Property does not satisfy the lender's underwriting requirements for the loan, this contract will terminate and the earnest money will be refunded to Buyer"

"Buyer shall apply promptly for all financing described below and make every reasonable effort to obtain financing approval."

"Conventional Financing: A first mortgage loan in the principal amount of $_____ due in full in ____years with interest not to exceed__ per annum for the first _____years of the loan with Loan Fees not to exceed___% of the loan. The loan will be with? or without? PMI."

Paragraph 9. "The closing of the sale will be on or before _________, or within 7 days after objections to matters disclosed in the Commitment or by the survey have been cured, whichever date is later."

Paragraph 13." Taxes for the current year, interest, maintenance fees, assessments, dues and rents will be prorated through the Closing Date."

This is the option clause.

Paragraph 23. "Termination Option. This paragraph will be a part of this contract only if both blanks are filled in and Buyer has paid the Option Fee. Buyer has paid Seller $_____(Option Fee) for the unrestricted right to terminate this contact by giving notice of termination to Seller within _____ days after the effective date of this contract. If Buyer gives notice within the time specified, The Option Fee will not be refunded, however, any earnest money will be refunded to the Buyer. The Option fee will be credited to the Sales Price at closing. For purposes of this paragraph, time is of the essence; strict compliance with the time for performance stated herein is required."

Please note that the Option Fee is paid up front. You have the right to get out of the contract for any reason and not lose your earnest money, losing only the option money. If the contract goes into full effect, your option money will be applied to the purchase. Strict compliance with the time period is in effect; this is "make up your mind during the specified period". You are paying this person for the right to "tie up" his property for 5 to 14 days.

( Nothing in the this article is meant to give legal advice. Real estate licensees con not give legal advice. If you have legal questions concerning real estate or contracts please consult an attorney. The above definitions are different from the strict legal definitions, but are given in the hope of making the concepts more understandable to the initiated.)

Call us for a free copy of an earnest money contract and financing addendum at 281/762-2213

How To Beat The Stock Market

Until recently I had an analysis here showing how home values beat stock market performance. The most important message here is that investment, like charity, begins at home. Our market has been flat or down a little since the latter part of 2007. Foreclosure resales are an influence on the bottom part of our market at present. When the bubble of foreclosures is past, the market should increase. On the upper end of the market new home prices have lowered over this same time period causing downward pressure on the market. New home sales have not been brisk during this same time period. When the market catches up and credit becomes more available, new homes should go up in price as compared to used. All of this said--if you buy a home or if you own a home and do not have to sell, I predict that a time will come when your home will increase in value most years in the greater Houston area. Our economy is good and it is steadily beating the rest of the nation. I suspect that most people who had a stock portfolio at the end of 2007 have suffered more loss in stock value than they have on the value of their home.

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Save Time And Money By Sitting Down With Your Realtor For A Buyer Consultation BEFORE You See Any Homes!
No one likes to waste time, but many purchasers do. Their Realtor didn't take time to sit down with them to teach them about the home-buying process and to find out in great detail about their ideal home. That is what a Buyer Consultation is all about.
Because we have taught many home-buyer seminars and have years of experience we enjoy teaching people about the whole home-buying process and to learn what each buyer's "Ideal Home" would look like. Isn't an hour of your time well spent when you plan to spend many thousands of dollars to make such a major investment?
During a Buyer Consultation with us we will cover:

• An overall review of the home-buying process
• We will discuss your time-line for buying
• We will tell you how we operate
• We will ask you to address this most important question of exactly what is important to you regarding this purchase
• We will review the mortgage process, determine where you are in regard to qualifying and getting approved
• We will discuss the amount of money you will need

Earnest Money and Option Money

Cash you will need for inspections, appraisal, closing costs

• We will discuss how offers are presented and counter offer procedures

Our goal is to make you into a very informed purchaser who will feel confident when the time comes to sign an offer to purchase your new home!
At the consultation you will also discuss signing an agreement form to hire us as your Buyer's Agent which allows us to perform top quality service and all of our resources and experience to help you find the home of your dreams. BUT, don't worry! If at any time you are not completely satisfied with our service we write in an "easy exit" clause for you allowing you to cancel your contract at any time.
At last we will sit with you and make a detailed list of features that you want in your new home, then we will start a computer search of the Multiple Listing Service to bring up homes that fill your needs.
It is important to get started off right!

The information contained in this site is the opinion of Fred Miller and does express any policy or opinion of Re/Max International, Rd/Max of Texas or Remax Plantation.

Fred Miller, Re/Max Plantation, FredMiller9@gmail.com , RichmondKatyHomes.com, Office receptionist: 281/342-2288 Cell Phone 281/924-2531

eBook: Chapter 6 Contracts