Two More Scenarios After Your Offer Is Accepted On A Home

Posted on January 27, 2022January 20, 2022 by author

In our previous blog, we covered the more common scenarios that happen after your offer is accepted on a home. In this blog post, we’re covering the scenarios of what happens if you or the seller wants to back out. If a seller accepted your offer, congratulations! You are one step closer to owning a home or property. What happens now can vary, but I’ll cover the different scenarios below.

Scenario 1: You Want to Back Out

Contingencies will determine how easily you can withdraw. If you’ve already signed a purchase agreement, it’ll be a little harder to withdraw but it may still be doable. If a contingency in your offer isn’t satisfied, you have two options. The first is to renegotiate with the seller to reach a point of mutual agreement, or you may be able to withdraw the offer, depending on the accepted contract.

Contingencies can be a safety net for buyers, but you can lose your earnest money deposit if you don’t fulfill your buyer obligations. Obligations mean following the deadlines and timeframes outlined in the purchase agreement.

In this competitive seller’s market, buyers have removed contingencies to make their offers more appealing to sellers. This means it will be harder to withdraw from the purchase agreement before closing. If there are no contingencies and you want to continue withdrawing from the contract, the seller has the right to retain your earnest money deposit. This is usually about 3% of the purchase price. For a $500,000 home, it could be a $15,000 loss.

Scenario 2: The Seller Wants to Back Out

A seller could have many reasons to change their mind, whether it’s accepting a better offer or deciding to no longer sell. The key is the timing of when they want to back out. If the seller chooses to withdraw their offer acceptance before signing the purchase agreement, there’s not much you can do. Similar to scenario 3, if the seller wants contingencies, but both parties cannot agree to, the contract can be canceled. If the seller decides to back out after signing the purchase agreement, they won’t lose their deposit, but they could have a lawsuit as they have breached the contract.

If you need help navigating this fast-paced seller’s market, contact me today! I’d love to help you find the home of your dreams this year. Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Two Scenarios After Your Offer Is Accepted On A Home

Posted on January 20, 2022January 20, 2022 by author

If a seller accepted your offer, congratulations! You are one step closer to owning a home or property. What happens now can vary, but I’ll cover the different scenarios below. In this blog, we’ll cover the two most common scenarios and in our next blog post, we’ll cover the scenarios if you or the seller wants to back out.

Scenario 1: You Sign the Purchase Agreement

This scenario is the most natural progression after an offer is accepted. Signing the purchase agreement means the property is under contract since the agreement has been accepted in writing and signed by both parties. It will include the following information:

Identification of participating parties (buyer and seller)
Legal description of the property
Financial details
- Purchase price
- Buyer financing
- Earnest money deposit amount
- Closing costs and how it will be split between buyer and seller
Condition/specifics of the sale
- Contingencies
- Items conveyed in the sale (appliances, fixtures, etc.)
Timeline
- Contingency time frame
- Offer expiration date
- Closing date
Condition of the home
Property disclosures
Relevant seller concessions, repairs, or credits

After the purchase agreement is signed and the earnest money is deposited, you now have the legal right to purchase the property. The signing and returning of the purchase agreement with the buyer’s earnest money deposit is the process of moving the sale into escrow.

Scenario 2: The Seller Wants to Negotiate

The seller might like your offer but can still negotiate some terms, so it’s in the seller’s favor. The seller can negotiate by submitting a counteroffer. This is why having a good buying agent is crucial, as they are the key to helping you navigate the negotiation process and helping get both parties what they want. Negotiations can include:

Increasing the purchase price or down payment
Removing/editing contingencies
Adjusting the length of closing schedule
Modify seller concessions/contingencies
- Seller repairs or credits
- Excluding certain items from the sale
- Property transfer deadline, also called the seller move out date

Once both parties find terms agreeable to them, a purchase agreement will be drafted for both to sign. Then the buyer can move forward with purchasing the property.

What Does A Homebuyer Pay for in Closing Costs in Texas?

Posted on September 8, 2021September 8, 2021 by author

Home prices have begun to stabilize in Austin! According to the Austin Board of REALTORS® July stats, the median home sales price is $480,000. This is $2,364 less than the previous month. If you’re ready to buy as a homeowner or an investor, read what you’re paying for in your closing costs.

Title Company Fees for Homebuyers in Closing Costs

These are the following fees your title company will charge you and what you are responsible for paying as the homebuyer.

Escrow Fee

The buyer and seller will pay their own escrow fee to the title company to process the sale’s closing.

Endorsements

Endorsements are expanded coverage with a title company’s insurance policy to help cover the specific needs of the transaction. Depending on your title company and unique situation, this price can be as low as $30 or as high as hundreds or thousands of dollars.

Recording Fees

Once the sale is finalized, documents need to be sent to the county. This can range from $120 to $160, but it will depend on the county.

Appraisal Fee

The buyer typically pays for the appraisal, and it can range from $500 to $700. The lender you choose will most likely want an unbiased third party to appraise the property to ensure the property’s value matches the contract price.

Credit Report

A buyer will pay the $50 to $75 fee for their credit report to be pulled.

Lender’s Document Preparation

This $100 to $120 fee is paid to the lender for creating and organizing all the closing documents.

Escrow Accounts for Homebuyers

If you’re putting down less than 20% for a down payment, the lender will require you to place your taxes and insurance into an escrow account at closing. As a homeowner, you will pay your taxes and monthly insurance to your lender directly using the escrow account. When the taxes and insurance are due, the lender will use the money from the escrow to pay them on your behalf.

Homeowner’s Insurance

Depending on the property and the coverage you choose, the price can range from $900 to $2000 per year.

Property Taxes

At closing, the seller will pay the buyer a year-to-date prorated amount for taxes. For example, if the closing happens on October 1st, the seller will give the buyer credit for ten months since the seller owned the property for ten months of the year. The buyer is then responsible for paying the difference between the credit and the total tax bill at the end of the year. Your lender will require several months of taxes in the escrow account.

If you’re ready to buy or invest in Austin area real estate, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

The Home Office | Why Investing In this Space is Crucial in Selling or Renting an Austin Home in 2020

Posted on April 21, 2020 by author

As health concerns reshape daily lives and force businesses to reconsider their workplace infrastructure, Austin home seekers will have new priorities. If you have a home to sell or an investment property to rent to those looking to move in Austin, pay attention to this developing trend.

The last decade of innovation has created opportunities through technology to work more creatively. Educational institutions brought the classroom to the home, and many businesses offer flexibility to allow employees to work and meet from anywhere. With the current COVID-19 landscape, these innovations are perfectly timed. While current headlines collide with tech tools, the shift in workplace structures and priorities is unavoidable, and it will ultimately impact what people are looking for in a home, whether they are buying or renting. In other words, home offices have just moved to the top of the most-wanted list for searchers.

Home Office Must-Haves

If you are selling a house or offering a home for rent as an investment property owner, adding or boosting a home office or flex area may help attract the right buyer or renter. Whether it is ensuring the room or space is ready for office equipment, or you are highlighting the most pertinent information in your marketing, be sure to include these home office must-haves:

Good Lighting. Make sure there are plugs available for lamps or overhead light fixtures are installed.
High-Speed Internet. Know what type of internet is available, have it connected, and include it in your marketing information.
Proper Outlets for Office Equipment. Ensure the outlets are up to date and in convenient locations to handle computers or printers.
Space. Add built-in shelving or stage the room to show off how it can be used for work or school.
Privacy. Ensure any space you are allocating as the dedicated office offers privacy with a door or is set apart from the main gathering area.

Home offices are the next wave of must-haves in a house, so if you are selling a home or offering a rental, it is time to invest in a dedicated space to meet the needs of potential buyers or tenants.

Are you interested in more information about buying an investment home in Austin or need a property manager to help navigate Austin’s rental market? Contact me. I am always here and available to answer any questions you may have. Set up a virtual appointment with me by contacting me below or give me a call at 512-721-1094.

Need more information about residential investments? Click here to visit our Owner Resource page.