There are numerous steps in the home buying process. Finding the right home is a big one, but putting in an offer is also a monumental step in becoming a homeowner. Having a Realtor walk you through the purchase contract (more formally known as the contract to buy and sell) helps the process become more clear. Be prepared for negotiations. Don’t take those negotiations personally (that’s why having a Realtor negotiate on your behalf helps ease the stress.)
The Colorado contract to buy and sell; a state form put out by the Colorado Real Estate Commission (CREC) is now 16 pages long. It changes slightly every year (hence the reason for my annual CREC update) but the idea stays the same. This is a contract between the Buyers and Sellers of a property outlining the details of the purchase agreement (purchase price, dates, financing, contingencies, title review, parties involved, and more).
As a Realtor I complete this contract to reach the best terms possible for my Buyers. Every piece of the contract can be negotiated. Most commonly Sellers will counter on price and dates. Negotiations can go back and forth, ideally ending in a contract agreeable to both parties. Typically, from the time an offer is given to a Seller it is 2-3 days before a final contract is agreed upon. There is often verbal negotiation between the parties until a final agreement is reached. The waiting can be hard for Buyers (I know I’ve been there too just like everyone else), but the only way to take that first step towards homeownership is to put in an offer. With your pre-approval letter and offer in hand, you are one step closer to being a homeowner.
Look for future blogs talking about the key components of the contract to buy and sell. It’s all in the details!