So, it is time! You have found the home of your dreams, and you are sure it is the perfect one! You have your earnest money ready, you are pre-qualified for your loan, and now it is time for that all important step: making an offer! This article will give you more details about the process of making an offer on a home, and will help you with any questions that you might have.

The first step is meeting with your agent. You and your agent will come up with a reasonable offer based on factors such as the selling prices of similar homes in the area, how long the home has been on the market, etc. You will then need to fill out a Purchase Agreement Form. You need to be prepared with a lot of information, because the Purchase Agreement Form requires a lot of detailed information about the property that you are wanting to purchase. Your real estate agent will be help you with this information and assist you in filling out the forms.

There are a few different things that will have to be included in your offer. Here is a short list:

Pre-Approval Letter From Mortgage Company

You will need to pre-approved for your loan prior to writing the offer (or have proof of funds if you are not going to be needing financing). You will need to have the pre-approval letter from your mortgage lender to give to your agent. They will in turn pass it onto the seller's agent. You will have to include this along with the mode of financing, and the percentage you want to put down. Also include whether or not you want the seller to pay any closing costs.

Earnest Money

You will need to have your earnest money ready to make a good impression and show the seller that you are serious about buying the property. It is usually 3-5% of the purchase price, but your agent can help you decide on just the right amount.

Price

You will also have to include the price that you are offering to pay for the property. Remember that the price listed is not what you have to offer, but only indicates what the seller is willing to accept at the current point and time. It is not a bad idea to offer less than the listing price if you can not afford the listing price. There is always the chance that the seller can say no, but there is also the chance that they can say yes!

Possession.

You must include when you wish to take possession of the property. Usually this is done immediately after closing, but might be a different day if there are unusual circumstances. You also need to include any personal possessions that you want the seller to include, such as window treatments, appliances, etc..

Closing Date

You also will need to specify which date you would like to transfer ownership of the property, or close on the property. This is usually within 3-10 weeks. This is where you will sign the final papers on your property, have certified funds, and take ownership. You also need to include whether or not you will have an inspection done. This is usually done within 3-5 days of an agreement being reached.

Contingency, Miscellaneous

If you are going to have any contingencies for the purchase of the property, such as a title contingency or a sale that is contingent on the sale of another property, you will need to list that in the offer. Also you will need to include any miscellaneous items, such as a home warranty or obligation for city inspection if one is required. You will also need to include a seller disclosure form, where the seller answers specific questions about the property. You will also need the legal description of the property, which is the written words describing a properties exact location. This is much different than the street address.

After your offer is submitted, it becomes a waiting game. Usually you will know something within 24 hours. The seller can either accept your offer, and you will then move forward in the home buying process, or reject your offer. The seller also has the option to counter your offer with a proposed amendment. It is important to remember not to engage in a "bidding war" with other potential buyers and end up bidding more than you can afford. You have to know when to walk away.

If you are looking for a real estate agent that can help you write up an offer, or if you just have questions about the offer process or the home buying process in general, we can help you! Contact Hamid Ali today for all of your real estate needs!

Congratulations, you are almost there! The home buying process can be a stressful one, and sometimes a long one, so it is perfectly normal that you might want to get it over with as soon as possible! The ultimate goal, the finish line, if you will, is getting those coveted keys so that you can begin moving in to your new home! So, the real question is, when are you gonna get those keys? Today, we will try to answer that question for you!

The "rules" in Washington State say that for the new owner to get possession of the home that they are buying that the transaction must be "closed". If you want to get really technical, the NWMLS contracts that are normally used in real estate transactions say that the seller has until 9pm on the day of closing to have all of their belongings out of the house. That rule is in place so that the seller can finish moving out and tying up any loose ends on the day of closing. So, remember, you might close at 9am, or noon, or 2pm, but you still don't "technically" HAVE to get possession of the home until 9pm on the date of closing!

A lot of people have been given misinformation as to what closing actually is. Most people think that closing is the signing of the contract. This is not actually true. The signing of the documents can take place days before the official closing on the property does. The signing of the documents and the money being transferred to the escrow company is not closing. It is simply "signing". The closing is actually something else entirely, that not many people understand. The closing of the property is when the deed is actually recorded at the county recorder's office. The purpose of this is to make an official record of the sale listing you as the new owner of the property and taking the property officially off the market. When the deed is recorded at the county recorder's office, and only then, is when the actual closing of the property occurs. Some counties have a website where you can check the status of the recording of the deed, or even watch it in real time! Ask your agent if your county has something like this available where you live.

Now, there are exceptions to the "only at closing" rule. Sometimes you may get your keys before that, sometimes you might have to wait until after. As you will learn in the home buying process, many different things depend on you being flexible, and things do not always go according to plan. Usually you will discuss this with the seller and have a plan for possession of the house already in place when you sign the contract. Sometimes the seller may need a few extra days in the house, or sometimes the buyer is in a situation where they have to move in early. You just have to be flexible and work around the needs of the other party. Usually, your agent will not advocate for early or late possession. There is a reason that everything needs to be done by the book.

If you are buying a home in Washington State, you might have received a pamphlet from your realtor titled "The Law Of Real Estate Agency". You might be wondering what this pamphlet is and why you are receiving it.Today we are going to try to explain this pamphlet in a little more detail and help you understand it. It is Washington State law that anyone dealing with a real estate agent, whether it be buying or selling, receive a copy of The Law Of Real Estate Pamphlet. This pamphlet must be presented to the customer before they start doing business with the agent.

The purpose of this pamphlet is to clearly define the duties and responsibilities that real estate agents have by law to their customers. The pamphlet is supposed to help clients know exactly what their real estate agent is supposed to be doing for them, and to inform clients of their legal rights. It is a very good place to start on your real estate journey.

The first part of the pamphlet will explain the definitions of some common terms that are used in day to day real estate transactions. You should familiarize yourself with these terms, since they will be used often during your home buying or selling experience. The next part of the pamphlet describes the realtor's relationship with the public and the duties of a realtor in general. They have separate sections regarding the duties of a buyer's agent and the duties of a seller's agent. There are also details about the duration of a relationship between buyer and seller, and also a special section on commission. The pamphlet goes on to explain about interpretation and liability and also has a small section about short sales.

After receiving the pamphlet, read through it thoroughly and be sure to ask any questions that you might have. By choosing a trusted agent like Hamid Ali, you know that you are choosing to have someone in your corner and help you out in any way necessary.

When you buy a home, the title to your property is your certificate of ownership, just like the title to a car. But, unless you are the first owner of a property, many other people may have owned the property before you. How do you know for certain that none of the previous property owners is going to try to cause trouble and try to claim ownership to the property? What if there are outstanding taxes or liens on the property that you didn't know about? What if the seller is not the true owner of the property? These are all scary questions, but unfortunately, they can also become a scary reality for many homeowners.

This is where title insurance comes in handy. Title insurance can cover your losses in case any problems arise associated with the title aspect of your new home. Studies show that anywhere between one half and one third of all transactions will show a discrepancy or problem in the title of a home sale. Title insurance can take care of these issues and problems, usually without the homeowner even knowing about it! Now, that is peace of mind!

The title company will research your title against all public records to make sure there is nothing that looks like it could be a problem later down the road. Then, if any of those problems do arise later, the title company will cover all costs and fees associated with fixing the issue. Pretty much, the title insurance company is a great advocate to have in your corner!

There are two types of policies, the lender's policy and the owner's policy. If you are being issued a mortgage, you must have a lender's policy. The lender's policy will cover your lender if anything arises with the title to your property. You might also need an owner's policy. The owner's policy will be the policy that covers your losses. Bottom line: The lender policy protects the loan company, the owner policy protects you.

Title Insurance can sometimes be very tricky and confusing. A lot of times there are a lot of questions about the process that you might need answered. By choosing a trusted real estate agent like Hamid Ali, you will be able to get all of your questions answered, and feel confident that you are making the right choice!

Now that you are venturing into the world of becoming a homeowner, pretty soon you will start to hear talk about homeowner's associations. You might have some questions, or you may not be totally sure exactly what power a homeowner's association may have. Today we are going to explore this topic, and hope to clear up some misconceptions.

A Homeowner's Association is a legal entity formed to govern rules about common property areas. They are usually not for profit groups. The members of a Homeowner's Association (or HOA) are the people who own property in a certain area. If you live in a townhome or condominium community, you will usually find a HOA. They are also very popular in new single family neighborhood developments.

HOA's make the rules regarding what can and can not take place in a neighborhood. They have the authority to enforce deed restrictions, and they control what you can and can not do on propery (even if you own it) that is located in that neighborhood. HOA's can have a lot of influence and power in a community.

When you are planning on becoming a resident in a HOA controlled community, you will receive a packet of information with all of the rules, regulations etc. This packet is known as a CC&R (Covanents, Conditions, and Restrictions). This CC&R will explain to you all of the rules and regulations.If you don't like something in the CC&R, it can be very difficult, if not impossible, to get it changed.

You will be expected to pay monthly or yearly dues as a member of the HOA. Fees can vary from small amounts, to outrageous ones. Some HOA's charge more than $300 per month! The fees that you pay will be used to upkeep community property, such as pools, golf courses, etc.

Along with paying a membership fee to be part of the HOA, the HOA will also govern and regulate what exactly can and can not take place on a property. Some of the most common things that HOA's regulate are:

• Exterior Paint Colors (usually grey, white, browns)
• Type of Shingles Used on Houses
• Control of Trash/Debris
• Pools
• Basketball Hoops, Recreational PlayThings
• TreeHouses
• BackYard Play Houses
• Trees
• Weeds, Plants, Gardens
• Lawn Care
• Trash Cans
• Recreational Vehicles
• Where You Can Park
• Window Coverings Seen From The Street
• Pets
• Garages/Sheds
• TV Antennas
• Clotheslines
• Yard Sales
• Mailboxes
• Outdoor Lighting

As you can see, HOA's can control many aspects of daily life, so it is important to decide whether or not you can live within the restrictions that they impose before deciding whether or not to buy. The goal of the HOA is to make life pleasant for all residents, but those that are not able to conform to the rules of HOAs may not find the experience pleasant. There is a lot of love/hate relationships with HOA's in America. Some people appreciate that they keep neighborhoods clean and tidy and help to keep up the value of surrounding homes. Other people find them to be too restrictive and overbearing. There are a lot of things to consider when determining whether or not you want to live in an area with a HOA. A trusted real estate agent like Hamid Ali can help you decide what the right choice is for you.

A title contingency is a common stipulation in a home buying agreement that allows the buyer to back out of the sale without penalty if there is a problem or issue with the title to the property. Title contingencies are very commonplace, and all Purchase and Sale agreements in Washington State are contingent upon the buyer receiving a clean title. This would only make sense, wouldn't it? The buyer has the right to know that the property they are buying is free from any title issues. The buyer also has the right to make sure that the seller has the legal right to sell the property and that they are the legal owners.This contingency is mostly to provide a peace of mind and protection for the buyer.

The process of a title contingency is pretty simple and straightforward. Within a week of coming to a mutual agreement, the buyer will be presented with a preliminary title report from a title insurance company. In this title report, there will be a list of any discrepancies or issues with the title. There will be details about any parties that may have a lien on the property. The title report will also list any issues or items that need to be cleared from the title before a new owner can take possession of the property. The title report will also list any easements or encroachments on the property.This is a good way for the buyer to make sure that they will have full accessibility to the entire property.

After the title report is issued, the buyer will have some time to review the report and talk with the title company or agent about any issues that the report might have found. The title agent should also be able to answer any questions that you might have about what they found in the report, if you should have them. If there are any major issues with the title that need to be cleared up before closing, you can let the seller and the title company know.Your agent might want to write up a letter to send to the seller's agent. The title company and the seller's agent will usually work together address any issues that might be a problem. The seller will have until closing to handle all of the problems and issues listed on the title report. If the issues on the report are not resolved by closing, then the agreement is null and void.

As you can see, a title contingency is a very logical contingency to have when buying a home. It offers the buyer a form of protection that they might not otherwise have. When a title contingency is in place, the buyer can rest assured that the home can be legally and easily passed on to them at closing. If you have any questions or concerns about a title contingency, contact a knowledgeable real estate agent like Hamid Ali today!

Don't run away! I know the title of this post is confusing, and may not make much sense to some of you right now. But, we are going to tackle this topic together and make sense of it all today! Since buying a home is such a big and often final purchase, sometimes you can set up some ground rules for the process. You might want to set up certain conditions under which you will buy the home. "I will only buy this home if... it passes an inspection." Or "I will only buy this home if I can sell my current home within 90 days." These "conditions" or "rules" that you set are called contingencies. Today we are going to go over a few of the most common kinds of contingencies in Washington real estate contracts today.

Inspection Contingency

This is probably the most common contingency, and for good reason. Most sellers and buyers can mutually agree that the buyer be allowed at least one inspection prior to the purchase of the home. This is a good rule so that they buyer can back out of the deal without penalty if for some reason there is something found to be at fault with the home.

Financing Contingency

This is also a common one. Most every single home sale contract is contingent upon the buyer being able to secure the financing required to purchase the property. Usually contingencies of this nature give the buyer a period of time between signing and closing in which to secure the financing. You can set the contingency to specifically what type of financing or interest rate you are willing to accept. Of course, if you are paying cash for your property, you won't need to worry about this type of contingency.

Title Contingency

This particular contingency is very common and very important for the buyer. If the seller can not produce a title to the property, they can not legally sell it to you. Therefore, a contingency based upon production of a valid legal title can protect you from buying a house that you were never really allowed to buy. A title contingency can also clear up any issues with the title and make sure that you will be the full, complete and sole owner of the property. Make sure that a title report is a contingency in your home contract for sure.

The three contingencies listed above are by far the most common. However, there are hundreds if not thousands more contingencies that can be used in a real estate contract. There can be contingencies for termites and other pests, as well as for lead based paints. There are contingencies specifying what type of deed the seller must present at closing. Radon Testing and Mold Inspection contingencies are also frequently requested. There are tons of other contingencies, including sewer inspections, private well inspections, and homeowner's association contingencies. Insurance contingencies are also pretty commonplace these days. As you can see, the types of contingencies are many and varied. With a trusted real estate agent like Hamid Ali, you will be able to sift through all of these types and decide on whether or not you want a contingency included in your contract.

The key difference between a home appraisal and a home inspection is that the appraisal is designed to protect the lender’s collateral, while a home inspection is designed to protect the buyer from maintenance issues that they weren't aware of.

Here is a more detailed description of these two steps in buying a home.

The Home Appraisal

An appraisal is required by a bank in order for you to get a mortgage. A not-so-funny trick is that the appraisal is required by the bank, but paid for by you. The appraisal is done so the bank can make sure that the home is as described and that the purchase price is comparable to other homes in the area.

The appraiser operates as an independent third party. They will come to the home to take measurements to estimate its size and take some photos. They will also look for obvious defects while they are there. Some loans have more strict requirements for inspections.

They will also visit homes that are nearby that they see as similar. They will research recent sales for homes that have a similar layout and value.

The appraiser will submit a report to the bank that lists an estimated value price. If this value price is less than the mortgage amount requested, the bank will reduce the amount of money they are willing to loan.

How to stay out of trouble with the home appraisal:

• The first thing is to make sure that you have already done your research about home prices in the area. If the house that you are looking is unusually high priced for the neighborhood, it needs to have some significant advantages over the other houses around it.
• The second thing to do is to do your own price comparisons. Your real estate agent can help you to find similar homes to make sure that you are paying a fair price (and therefore asking for a fair mortgage) for the area.

The Home Inspection

A licensed home inspector will perform an inspection to find items that need repairing, maintenance that needs to be done as well as any issues that may be there with the home.

As opposed to an appraisal may take 15-30 minutes and home inspection usually take over 3 hours. Nothing is off limits.

The home inspector will look at everything from the foundation to the attic. He or she will check the wood for termites, the appliances for age and wear and the windows for energy efficiency.

The goal of a home inspection is to not have any surprises. Most home inspectors are insured (hire one that is) and, if they missed something major, their insurance will pay to have it corrected.

Sometimes, during the purchasing process, you might hear the seller or the other realtor say things like, “The owner is a contractor so there’s nothing to worry about.” No matter what else you do, hire a licensed, competent home inspector to make sure you aren’t buying a money pit.

In addition to a general home inspection you may also want to hire a specialist if you have a specific concern. People like a heating company to look at the furnace, plumbers for the piping or an electrician for the wiring can save you a lot of pain and money later. Your real estate agent will have the names of people you can call.

Even though a home inspection or the help of specialists is as optional as having a mechanic look at a used car before you buy it, it is money well spent and as they say “an ounce of prevention is worth a pound of cure.”