first time home buyer, braden shares his adventure
Part 3 – Offer to Purchase
Braden has agreed to share his scariest thoughts/worries about home buying and taking on a mortgage. It will be fun to capture his perspective, as a first time home buyer on this huge adventure. In this post we’ll talk about an offer to purchase on a great property. We’ll follow him through this process, checking in along the way.
house hunting Update
We last left Braden watching new listings hitting the market and pondering the idea of writing an offer on a foreclosure property.
Braden: The foreclosure just felt very risky for the size of the house. Looking to the future made it hard to justify buying a house that was under 1000 square feet. It wasn’t terrible inside but would have definitely needed quite a bit of work before it was comfortable to live there. I really wasn’t sure I would be able to take on a larger renovation with my busy work and play schedule!
I decided to keep an eye on new listings and think I have found the perfect property. The garage is detached and just about set up to handle most of my projects. The house is in a wonderful established neighborhood with a nicely landscaped yard. The house itself is 55 years old, renovated and looks to be in move in condition. I went back several times with my support team to have ‘another look’ . Thank goodness my girlfriend was with me, not only to agree the garage is a beautiful thing, but also point out the finer touches in the house, upgraded kitchen, open floor plan not to mention the double sinks in the bathroom!
How was the offer to purchase process
Colleen: Braden, once you decided this was the property, how did you find the process of writing an offer.
Braden: The offer process was pretty straight forward. Having only two conditions helped to keep the stress levels a little lower. The seller was quick to respond initially. Negotiations came down to a $1500.00 difference, which took the sellers an entire day to accept. This brought my stress levels right back up.
Colleen: Your offer had two conditions, which were to be removed within 10 days of negotiating the offer; a property inspection and mortgage financing. Collecting paperwork and waiting for the pieces to come together can be little challenging. How were you feeling during this time?
Braden: Lining up all the paper work is a little difficult when I don’t really have time at work to be making phone calls. But with a detailed list and the help of email I was able to get what I needed fairly easily.
what about a real property report (RPR)
Colleen: We’ve spoken of the importance of a Real Property Report, were you able to obtain one prior to your condition date? How did it look?
Braden: Unfortunately, I did not get to see the real property report. They were actually doing it the same day as we were doing the home inspection. I was assured that if anything came up the lawyer would be able to hold back some payment if necessary. I think it would be a good idea in the future to put the RPR as a condition of the sale.
Colleen: Braden, we discussed home inspections in our last post. Do you mind sharing your experience and findings?
Braden: Having the home inspection was great. I tried to do my research and found a company that had good reviews online. I feel the inspection was pretty thorough and the report was very professional. A few minor things about the inspector and the sewer scope that was completed left me with an unsettling feeling. But for the most part I was happy with the job done and would recommend an inspection to anyone!
Not only can having a home inspection give you peace of mind with the condition of the property, Braden was able to use the findings to negotiate a reduction of the purchase price. Braden’s realtor makes a practice of walking about the property pointing out any possible downside, and takes this into consideration when negotiating the initial offer to purchase price. If there are large issues uncovered by the home inspection then renegotiating may be warranted. It’s important to keep in mind that at the end of the day everyone wants to walk away feeling good.
Colleen: Braden, How did you determine the new purchase price?
Braden: As you stated, my realtor used some of the things we noted during our walk throughs to negotiate the original offer. We did find a few things that needed attention during the home inspection such as the garage door. I made a few phone calls and got some quotes for repairs needed. I made my offer and the sellers met me half way. I was pretty satisfied with the whole process as I was able to save $13500.00 on a house that was only on the market for a handful of days.
This is a HUGE step for any home buyer, this it it! Committing to buying a home, yikes!
Colleen: Braden, can you tell me how it felt when you removed the conditions of the offer to purchase?
Braden: Having the conditions removed was a huge relief. It finally felt like the place was going to be mine! Looking forward to possession day !!
As Braden anxiously awaits possession date, in between his ‘drive bys’ he has a list of items to keep busy with. Here’s a snippet of how his list is looking:
- set up home insurance
- set up property tax payments
- set up utilities (gas, electricity, internet)
As the purchase transaction is rolling along, next step a visit to the lawyer, Braden will take this time to get things set up pack and plan! We’ll check in after he’s settled in to see how things are for our first time home buyer!
Check back in a few weeks to hear how the house buying adventure comes to a close.
If you have any questions feel free to reach out anytime.