An Overview of Purchasing a Home in Orange, Ulster & Sullivan Counties

A prospective home buyer may have some surprises in store for them, not the least of which is the affordable price structure of housing here. The business (and pleasure)! of buying and selling real estate is practiced differently throughout the country and it is wise to be forearmed with some of the local customs. Following are some brief descriptions of the purchasing process.

Agency Disclosure: New York State requires that prospective buyers and sellers sign a disclosure document selecting the type of agency relationship he/she desires in the real estate associate. The disclosure must be signed at the time of the first substantive contact with the buyer.

Asking Price and Selling Price: are not related to one another by any magical formula or percentage calculation. A fairly priced property may sell well for the full asking price. Other properties may undergo one or two price reductions before a sale is effected. But don't be put off by a property regardless of the price ... if you love it, offer what it's worth to you. Your Real Estate Solutions Associate has access to a wealth of data which can help you formulate your offering price.

Property Included In The Sale: should be itemized when submitting an offer to purchase. Do not assume that the refrigerator, hallway light fixture, etc., are automatically included in the sale. While it is customary for the seller to include the stove and dishwasher (if it is a built-in) the best policy is to itemize everything you want included in the price you are offering.

Written Offers to Purchase Property: must be immediately submitted to the owner(s) even though there may be another buyer negotiating for the purchase of that property. Do not assume that if you are the first bidder that you have a right to buy the property... a more aggressive bidder might offer the full asking price while you're "thinking it over."

Binders & "Earnest money": are commonly used in this area, however, once your offer to purchase is accepted by the seller, it is in your best interest to sign the contracts ASAP. Until contracts are signed there may be nothing to ensure that you have satisfactorily secured the purchase of the home.

Inspections: are routinely performed prior to the signing of the contracts and are an expense of the buyer doing there "Due Intelligence." It is advisable to be present during your inspection rather than waiting for a written report which could cause an unnecessary delay. Homes are generally offered in "as-is"condition and most sellers will balk at suggestions of repairs or replacement of components.

Reviewing the sales contract: The signing of the sales contract is one of the most important steps in a real estate transaction in New York. It defines the entire terms of your purchase and should be carefully considered and reviewed by both you and your attorney before signing.

Down payment on Contract Signing: is traditionally 10% of the agreed purchase price of the property. In special situations you may be able to negotiate a lower down payment, but 10% is the norm in this area and most sellers and their attorneys will look for it. The down payment is held in escrow by the seller's attorney, usually until such time as title passes.

Title Search: In New York, it is recommended (banks will require it) that a title to the property you are purchasing be insured by a title company at the time of transfer of title to insure that there are no liens or claims against the property and also guaranteeing that the seller has the legal right to sell the property.

Financing: as your Real Estate Solutions Associate is well versed with financing programs and requirements he/she may be of assistance to you in providing information about lending institutions that can offer favorable terms for financing.

Closing of Title: Prior to closing, you should obtain an estimate of adjustments between you and the sellers of the date of closing. These are just a few guidelines to be aware of while house hunting. Your Real Estate Solutions Associate will coordinate every facet of your purchase for your convenience.

Thank you for allowing Real Estate Solutions to be of assistance.