You have found some homes in the Fort Knox Kentucky area and you are itching to go look at them. Before embarking on your quest, there are a few things that you should do to prepare. Ask your Kentucky REALTOR to provide you with the Multiple Listing Service (MLS) listing sheets. You can look these documents over as you tour the properties close to Fort Knox. You may also wish to take a digital camera, flashlight, tape measure, pen/pencil and notebook.
The MLS listing sheets will have the vital information of the homes. Square footage, year of construction, number of bedrooms/bathrooms and much more information will be located on these sheets. You may wish to compare the information on the sheet to the actual home. Sometimes erroneous information is listed and this should be cleared up when you tour, or shortly thereafter.
Use the notebook to save any questions you may have regarding the homes and any additional information you require such as utility costs and taxes. You may also wish to make notes of your likes and dislikes, i.e. proximity to Fort Knox. I suggest my buyers rank the homes as we look so they always know which one is their favorite and which ones are the backups. Take photos of the rooms, yard, and other features to refresh your memory when you later discuss the home.
You should have a flashlight because sometimes the electric is off, and also it may be needed to make cursory inspections of attics and crawl spaces or other dark areas in the home. A full blown home inspection comes after you have a contract on the house. Note any apparent water marks on the ceiling, floor joists or walls. You will want to find out what caused the marks, and what, if any repairs were made.
When done touring homes, you need to discuss your questions with your Elizabethtown Kentucky real estate agent. If you've found the home you want, it's now time to review all the information, decide how much of an earnest money deposit will be acceptable, and make an offer. Sometimes a property is sold as-is so take a careful look at the property disclosure statement(s) with your real estate agent. The disclosure statements are filled out by the property owner and should list any defects of which the owner is aware. If the home was constructed before 1978 there should also be a lead paint disclosure which the seller has filled out. In this document the sellers must disclose any knowledge they have of lead paint used in the home.
The home buying process may seem a bit daunting at first but a good REALTOR can guide you through and help you maximize your investment.
Showing posts with label Good Faith Deposit. Show all posts
Showing posts with label Good Faith Deposit. Show all posts
Tuesday, September 2, 2008
Thursday, November 15, 2007
What is a "Good Faith Deposit" and what happens to my money?
What is it?
Rather than being a down payment, it shows the seller that you are acting in good faith, serious about buying the property and intend to complete the transaction.
A.K.A.
There are different names for the Good Faith Deposit, you may hear it called good faith check, earnest money deposit, contract deposit, escrow money, or even just deposit.
Is a Good Faith Deposit required when purchasing a home in the Elizabethtown, Kentucky area?
Contracts must contain consideration to be valid but actually the buyer's signature is consideration. So even though technically a deposit may not be required by law, a seller can require a buyer to make a deposit as part of the contract negotiation.
So is my deposit check cashed? Who holds the money?
The deposit check is cashed and held in RE/MAX Executive Group's escrow account (a.k.a. trust account). In the Hardin County Kentucky real estate market, the custom is to have the buyer's brokerage hold the escrow money (Louisville area the seller's brokerage holds it). You can specify in the sales contract where the money will be held.
How much should the deposit be when buying a home near Fort Knox Kentucky?
In some areas of the country, sellers ask for 1% of the purchase price ($175,000 = $1,750). Usually $1,000 is sufficient and what we primarily recommend. It's usually not an issue at any amount and it's just another point of negotiation between buyer and seller. If a buyer feels the property may get multiple offers, he/she may make increase the deposit amount to make his/her offer stronger than a competing offer.
Who keeps the money at the end of the transaction?
If the contract is executed (property changes hands). The money belongs to the buyer(s); it's either applied toward your closing costs or refunded if the seller pays all of your closing costs.
Well what if something goes wrong with the transaction and we don't close?
The first and most important thing you should do is read your sales contract. Your real estate agent can only provide so much help at this point because he/she can't give you legal advice. Every transaction is different and it depends what the reasons were for the breach of contract. Many times the buyer and seller work something out (communicating through their agents). If the buyer and seller can't work it out, then the buyer can't buy and seller can't sell until it gets settled so it may be in both parties' best interest to work it out. The Broker is bound by Kentucky Real Estate Commission rules when disbursing funds.
Rather than being a down payment, it shows the seller that you are acting in good faith, serious about buying the property and intend to complete the transaction.
A.K.A.
There are different names for the Good Faith Deposit, you may hear it called good faith check, earnest money deposit, contract deposit, escrow money, or even just deposit.
Is a Good Faith Deposit required when purchasing a home in the Elizabethtown, Kentucky area?
Contracts must contain consideration to be valid but actually the buyer's signature is consideration. So even though technically a deposit may not be required by law, a seller can require a buyer to make a deposit as part of the contract negotiation.
So is my deposit check cashed? Who holds the money?
The deposit check is cashed and held in RE/MAX Executive Group's escrow account (a.k.a. trust account). In the Hardin County Kentucky real estate market, the custom is to have the buyer's brokerage hold the escrow money (Louisville area the seller's brokerage holds it). You can specify in the sales contract where the money will be held.
How much should the deposit be when buying a home near Fort Knox Kentucky?
In some areas of the country, sellers ask for 1% of the purchase price ($175,000 = $1,750). Usually $1,000 is sufficient and what we primarily recommend. It's usually not an issue at any amount and it's just another point of negotiation between buyer and seller. If a buyer feels the property may get multiple offers, he/she may make increase the deposit amount to make his/her offer stronger than a competing offer.
Who keeps the money at the end of the transaction?
If the contract is executed (property changes hands). The money belongs to the buyer(s); it's either applied toward your closing costs or refunded if the seller pays all of your closing costs.
Well what if something goes wrong with the transaction and we don't close?
The first and most important thing you should do is read your sales contract. Your real estate agent can only provide so much help at this point because he/she can't give you legal advice. Every transaction is different and it depends what the reasons were for the breach of contract. Many times the buyer and seller work something out (communicating through their agents). If the buyer and seller can't work it out, then the buyer can't buy and seller can't sell until it gets settled so it may be in both parties' best interest to work it out. The Broker is bound by Kentucky Real Estate Commission rules when disbursing funds.
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