How to prepare to write a purchase agreement?

Are you ready to write a purchase agreement?

There are a few things you’ll want to consider before you write a purchase agreement in MN.  I will share a few main avenues of the purchase agreement and what you should expect in today’s market.  First, we’ll look at what you need and what to expect.  Second, we’ll talk about contingencies (a way out), and lastly, we’ll talk about your realtor’s role in writing a purchase agreement.

What you should expect when writing a purchase agreement in MN:

Are you familiar with the term earnest money?  Earnest money is a check that you write at the time of purchase agreement providing a good faith to the seller that you are serious about buying the home.  The word earnest means “with full effort and attention.”  So, earnest money is putting your full effort and attention via the form of money for the purchase of a home.  Go ahead and post a comment or call Travis directly if you would like more information regarding the earnest money.

You will also need a pre-approval letter from your lender or proof of cash funds.  The pre-approval letter is a very important piece of the purchase agreement puzzle.  In fact, in most cases, we can’t submit an offer without a pre-approval letter.  So, you should then have your letter ready before you view any homes.  That way, you will not be blind sided by any fees associated with the home buying process.

You can also expect to have some anxiety when writing a purchase agreement.  Don’t worry, that’s perfectly normal and expected.  A good realtor can help set the expectations given the current conditions and with that provide some security.

How to protect yourself in writing:

Contingencies are little if then statements in a purchase agreement.  For example, you might choose to inspect your home before you decide to finalize your money transfer.  A good realtor will draft up an inspection contingency so you have the ability to walk away from the purchase agreement with no repercussions.  The inspection contingency allows you to either renegotiate the terms of the purchase agreement, or walk away from the deal if you should choose to.  In either event, your earnest is protected until you fully agree in writing to move forward with the previous terms.

Another very common contingency when writing a purchase agreement is a financing addendum.  In the event that you loose your job before closing, the financing addendum, in most cases, protects against the loss of your earnest money.  A good realtor will draft up the purchase agreement to protect your best interests and in most cases, the financing addendum is a great protection.

There are some other contingencies that may take place when writing a purchase agreement and most are negotiable items.  For more information, call or email Travis.

What does your realtor do for you when writing a purchase agreement?

Each realtor will have their own tendencies when drafting a purchase agreement.  For Travis, it’s first an link of what it is that you want and what is best for you.  In most cases, we will review the market data, days on market, seller motivation, and other factors that may help determine the price and other negotiable items.  In any event, our role as realtors is to work in your best interests at all times; regardless of the outcome of the purchase agreement.

If you should have any other questions regarding writing a purchase agreement, go ahead and reach out to me directly.  I am happy to help.

Travis Anderson – realtor