Hello and welcome to my blog!
Today, we're going to talk about making an offer on a resale home in Kissimmee. While this topic may not be the most glamorous, it's crucial to understand the paperwork involved before making an offer. Knowing what to look for can help you negotiate effectively and reduce anxiety. Let's dive into the essential aspects of making an offer on a resale home in Kissimmee.
What Can Real Estate Agents Do, and What Are Their Limits?
Real estate agents are licensed professionals but not attorneys. While we can fill out the blanks within the contract and add additional terms, the actual document you present is a legal one. Knowing this distinction is vital for understanding what to expect from your agent.
Understanding the Paperwork
There are two main forms for a residential sale: the standard FAR-BAR Purchase Agreement and the FAR-BAR "As Is" Purchase Agreement. Both contracts are similar, but the standard one includes a section for negotiating credits for repairs and closing costs upfront. The "as is" agreement does not, it only provides the right to inspect the property and cancel the contract if you are unsatisfied with the inspection results.
Now let's talk about what a standard offer package should look like. In the next section I will give you the list of documents you should see in your offer package.
Pro Tip: You should take a look at this paperwork ahead of time, not when you have found the home you like, and you are ready to make an offer. For my clients, I provide a blank copy to review before we even begin house hunting. 
Essential Documents in the Offer Package
- Purchase Sale Agreement: A 13-page document outlining the terms and conditions.
- Seller's Property Disclosure: Provides the seller's knowledge* on the property's condition.
- HOA Disclosure: Details fees, payment schedules, and any applicable capital contributions.
- FHA or VA Addendum: Needed if you are financing through these loan programs.
- Pre-Approval Letter: Verifies your ability to finance the purchase.
*Keyword Knowledge. A seller's disclosure should not replace a home inspection, ever.
Other Disclosures not as common but worth mentioning are:
- Lead Paint Disclosure: Mandatory disclosure for properties constructed prior to 1978.
- Mold Disclosure
Having you review this paperwork ahead of time helps with the following:
- By knowing what you will be signing it minimizes anxiety.
- It allows you to ask questions.
- And you get to strategize about your future offer.
Key Sections to Pay Attention To When Making an Offer
- Items Included with the Home: Ensure all appliances and other items you expect to come with the home are listed.
- Good Faith Deposit (Escrow): Clarify how much you need to send and to which title company. And the protocol should you have to cancel after you send the deposit to the title company.
- The Title Company: This Section Must Not Be Left Blank. You need to include the name, address, contact information and ideally the contact name for the title company. No TBD allowed. At least not with me.
- Seller's Response Time: Know how long the seller has to respond to your offer, especially in a competitive market.
- Loan Terms and Conditions: Understand what documents you need to provide and adhere to the timeline. "No sleeping on your laurels!"
- Home Inspection Period: Define how many days you have to complete this crucial step, especially during hurricane season.
- Closing Date: Usually between 30 to 45 days in Florida. However, this timeline is largely determined by your lender, so be sure to involve your loan officer in the conversation.
- Possession Date: Often the same as the closing date, unless post-closing occupancy is needed.
Now let's talk about the most common Key negotiation points. These are not all; there are 25 points of negotiation within the contract, but these are the ones most clients focus on. 
Common Negotiation Points When Making an Offer to Buy a Home
- Price: The most obvious point of negotiation.
- Good Faith Deposit: How much you'll put in escrow.
- Closing Date: The timeline for completing the sale.
- Credits: Possible credits request for repairs or closing costs.
It is worth mentioning that as a buyer you must be aware of what the local market trends are.
This will significantly impact your negotiating power.
Rely on your real estate agent's knowledge regarding the local market trends to figure out how to structure your offer.
Now let's answer this popular question about out-of-pocket expenses since we are talking about making an offer.
It sounds appropriate to address it here.
Are there Out-of-Pocket Expenses When Buying a Home?
The answer is, Yes. These are what I call the costs of doing business. Here are the typical out-of-pocket expenses that you will have in a normal home purchase.
- Home Inspection: A non-refundable fee to assess the property's condition.
- Home Appraisal: Required by the bank to ensure the home's fair market value.
- Survey: Typically required by your lender unless buying with cash.
Conclusion:
If you're a first-time home buyer, understanding these elements is crucial for making a successful offer on a resale home in Kissimmee or anywhere in Florida, really.
Familiarize yourself with the paperwork and key negotiation points to reduce anxiety and make informed decisions. If you have any questions, feel free to reach out. Remember, while I'm a real estate professional, I have connections with legal experts who can provide additional peace of mind.
Thank you for reading until the end.
Until next time, happy house hunting!
P.S. What are your biggest concerns when making an offer on a resale home? Drop your comments at this number 321.697.2426, and I will be sure to get back to you, share this guide with friends, or reach out to me for a one-on-one consultation.
