1.1 Included Items. Unless excluded herein, this sale includes the following items if presently owned and attached to the Property: plumbing, heating, air conditioning fixtures and equipment; ceiling fans; water heater; built-in appliances; light fixtures and bulbs; bathroom fixtures; curtains, draperies and rods; window and door screens; storm doors and windows; window blinds; awnings; installed television antenna; satellite dishes and system; permanently affixed carpets; automatic garage door opener and accompanying transmitter(s); fencing; and trees and shrubs. The following items shall also be included in this sale and conveyed under separate Bill of Sale with warranties as to title:
1.2 Excluded Items. The following items are excluded from this sale:
1.3 Water Rights. The following water rights are included in this sale:
This is section 1 of the Real Estate Purchase Contract, (the REPC). The purpose of this section is to make clear the actual property of the offer. The address is filled in as well as one other form of identification for the property in question. The next part, section 1.1 titled “Included Items” is added to make clear that the buyer expects that the property he/she ends up with is still the property he/she made the offer on.
There have been instances in history where the seller has accepted an offer to sell a property but when the buyer took possession, the house was gutted completely. These stories can be amusing to tell after the fact but buyers are not amused when they walk into their new house to find nothing but four standing walls…barely. Sellers have been known to take all the light fixtures, or all the cupboards, appliances, lightbulbs, and even the windows. I am sure that with a little research you could find that there have been sellers at some point in time that havetaken just about anything you can think of. Because of all the problems with this and all the litigation through the years, this section of the REPC has been developed to protect buyers from ignorant or just plain greedy sellers.
The way the law defines what should stay and what can be taken is the way the item is attached to the property. If an item is actually attached to the structure or even the soil, it is considered a fixture. A fixture is expected to remain with the property. So, a couch that is sitting on the floor but is still movable is personal property but if you drill holes in the floor and nail the couch down, it could be considered a fixture. If the seller takes the couch that was once nailed to the floor, he/she may find himself on the wrong end of a court ruling. Section 1 spells out clearly the items that most buyers expect to remain with the property so that there is no question in the seller’s mind what he/she can take.
So, what if that light fixture in the dining room is a family heirloom that has been handed down for the last 6 generations? I recommend, if you are planning to sell your home, it is best to change any light fixtures, curtains, appliances; anything you plan to keep (that is fixed), before you ever show your home to the first potential buyer. That is the easiest way to avoid any problems and lawsuits. Show the home as it will be when the buyer takes possession, minus your personal items, that are not fixed to the property. If you remove a fixture before showing and the damage shows, that is a good way to tell if you need to replace the item or fix the damage caused by it’s removal.
There is a space in the contract for a buyer to add items that may not necessarily be considered fixed but he/she feels it belongs with the property. Anything that a buyer sees on the property that he/she must have, can be included in this section. For instance, if there is a handmade bookshelf sitting perfectly in a nook that nothing else would look good in, the buyer may add the bookshelf as part of his/her offer. Of course the seller always has the option to negotiate a counteroffer and ask for more money to include the item/s or refuse to include it at all.
Section 1.2 is added to clarify what items will be taken with the seller. This space may be a good place for a buyer to state clearly that the seller remove something as well. If the buyer does not want the built-in “antique” television that has been there but has not worked since 1960, he can ask for it be excluded in the sale. Often there are items that a seller will insist he/she keep, such as the sound system in the theater room. Most good REALTORs® will make sure the Multiple Listing Service lists these items up front, but again, a buyer may try to negotiate to keep the item/s anyway. It is best to clarify your intentions either way to avoid problems down the road.
When buying or selling a home, there are so many things to take into consideration. This is only the first section of the Real Estate Purchase Contract and already it is clear to see how important it is to have a competent professional on your side to help you wade through the negotiations.
Buyer
offers to purchase the Property described below and hereby delivers to the Brokerage, as Earnest Money, the amount of $
in the form of
which, upon Acceptance of this offer by all parties (as defined in Section 23), shall be deposited in accordance with state law.
“Received By”
Brokerage:
Phone Number:
This is the first section of the Real Estate Purchase Contract. This section is important because it establishes a buyer’s intent to buy a home. The Real Estate Purchase Contract, in the beginning, is only an offer to purchase the intended property. When signed by the buyer then accepted and signed by the seller, it becomes a contract between both parties. When a buyer finds a property he/she would like to buy, he/she give his/her agent earnest money as a sign of good faith. It is like saying that you earnestly want to buy that home.
The amount of an earnest money deposit varies. I have seen earnest money deposits as low as $500, but I must say that when I am representing the seller, I will advise my client to counteroffer with a higher amount. In my experience, an earnest money amount less than $1,000 is too easy to walk away from and more transactions held together with less than $1,000 are the ones that usually fall apart. In my opinion, it is not worth it to the seller to take his/her home off the market and disturb the marketing momentum it may be experiencing for less than $1.000 unless the purchase price of the property is less than $100,000 which is almost unheard of in Utah County anymore. If the purchase price of the property is more than about $300,000, a buyer may want to put down a higher earnest money deposit repectively according to the price. As a buyer, your earnest money deposit states your intent to buy the property and strengthens your offer which can be important in a seller’s market or if you really love the home and do not want to chance losing it.
Too often, the earnest money deposit is misunderstood by both buyer and seller. When buyers and sellers enter into transactions without professional help and things go wrong, both buyer and seller claim the right to keep the money. These situations most often end up in litigation. Another common misconception is that too many buyers and sellers think that once the earnest money is paid, it is the seller’s to keep, no matter what. These problems can be avoided by using a professional, having a clear contract which spells out the different obstacles that may come up, and who gets the earnest money if the transaction fails in these situations. Even with a professional real estate agent on your side, earnest money issues come up. When any deal falls apart, both parties can be hurt financially which makes each feel entitled to the money. If you are going to try and buy a home on your own, NEVER give the earnest money directly to the seller. (I do not understand why a buyer would prefer to do it on his/her own when he/she can hire the best agent, whoever they perceive that to be, for free. The sellers almost always pay the professional fee.)
The last point I wanted to touch upon is how common it is for buyers to write a check for the earnest money when they do not have the funds to do so. It is true that the earnest money will not be deposited into the special account for such funds until the offer has been accepted but that was never intended to give the buyer a little longer to “come up with the money”. A seller is supposed to look at your offer and seriously consider it based upon your willingness to put your money where your mouth is, right up front. It is fradulent to make an offer stating that you have delivered to your brokerage as earnest money, an amount of $XX, if you have not really done so.
Many buyers and sellers believe that the earnest money is added on top of the purchase price. Once under contract and the transaction makes it to closing, the earnest money is applied to the funding of the property. If you have deposited $1,000 as earnest money and the purchase price of the property is $100,000, the buyer will only be responsible for paying the remaining $99,000 at funding.
There are so many misunderstandings and misconceptions about buying and selling real estate. If you have a question about the process, please ask me. You can comment to this or any post with your question/s or email me directly. I would be more than happy to explain.
Dan was a single guy living at home with his father
and working in the family business. When he found
out he was going to inherit a fortune when his sickly father died,
he decided he needed a wife with which to share his fortune.
One evening at an investment meeting he spotted the most
beautiful woman he had ever seen. Her natural beauty took his breath away.
“I may look like just an ordinary man,” he said to her, |
“but in just a few years, my father will die, and I’ll inherit 20 million dollars.”
Impressed, the woman obtained his business card and
three days later, she became his stepmother.
Women are so much better
at estate planning than men.
I had a seller once that was upset with me because agents would want to show their home with less than a 24 hour notice. Several had called while sitting in the car out front. I did my best to protect this family and make the process as painless as possible but, ultimately, the buyers were in the drivers seat. There are sellers that refuse to show their property with less than a 24 hour notice. I understand how intrusive it can be to have people want to see your home during dinner, or when you have just arrived home from a long day’s work. It is intrusive and inconvenient but in the end, the seller’s goal is to get sold and a buyer will never put in an offer if he does not at least see the house. It is better to show a house a little messy than not at all. It is better to suffer a little discomfort to acheive your goal quickly than to expect that your house will sell while only allowing it to be shown every other Tuesday between 12:00 and 3:00 p.m.
Most sellers understand this and will allow all showings even though it can be inconvenient. As I said before, a buyer is more likely to make an offer on home that was a little messy when they see it than one they did not see at all. Refusing to let a buyer see the home is a sure way to guarantee that you will have to wait for the next buyer to come along.
Now, let’s turn on the buyers for a minute. As an agent, I have had several buyers that come into town for only a short time and have set aside one afternoon to look at homes. Unfortunately, many of these buyers do not make me aware of their time restraints until only a few minutes before they want to start looking. It can be embarrassing to call the listing agent and ask if we can show that listing within the next hour. So, sellers, be patient with us agents because we are just trying to make everyone happy. Sellers want notice before showing their homes but buyers want to see them right now. What are we to do?
On the other hand, potential buyers drive by a home for weeks noticing the “for sale” sign in front. Every time they drive by, they think, “I would really like to see that house,” but, they do nothing about it until one day, something happens and they are determined they want to see it…right now! I have had several buyers call me and ask about a certain home and what they have to do to see it. I ask some qualifying questions and almost always find out that they have not yet talked to a lender nor have they taken any steps toward purchasing a home up to this point. I treat all these people as serious buyers and start guiding them through the process. There are a few things that a buyer must do before they start looking at homes. This is where I lose buyers.
Too many buyers do not want to go through the proper steps. They do not want to commit to one agent so will call evey agent whose name is on the sign out front of an interesting house. Somehow, they do not realize that it is better to have their own agent representing them and only them instead of representing both them and the seller. This happens occasionally and makes that agent and the broker limited in how helpful they can be to either party.
It is the law in Utah that agents must have a represenation agreement with buyers, in writing. If you buy a listed house in Utah, you will have to sign an agreement whether you sign it up front with your own, hand-picked, prefered agent or you wait until you find the right home and sign with the same agent that the sellers are paying to help them. Having your own agent does not usually cost you anything since the seller typically pays the professional fee.
Entering into a represenation agreement gives your agent the right to show you homes in Utah that are not that agent’s listings. An agent can show you his/her own listings without an agreement but they have no right to show you a home that is listed with another agent. Doing so without a buyer representation agreement, in writing, makes that agent a “sub-agent”of the seller which can open a whole new can of worms (translation=lawsuit fodder.) In the past, all agents represented the seller as sub-agents. Buyers were on their own. It was not a good thing and Utah lawmakers changed the laws in order to protect buyers, providing a way for them to have their own professional working on their side.
Too many buyers call me and expect me to show them the house they have been interested in for weeks, but because I cannot show them the home right now, they move on to find an agent that will show them the home even though they have not taken the proper steps to do so. There are agents out there that disregard the law because they are desparate for a closing. There is usually a reason for this desparation so “buyers beware.”
Serious buyers are not afraid to take the necessary steps to purchase the home of their dreams. “A baby must learn to crawl before they walk,” “Don’t put the cart before the horse.” etc. If you are thinking about buying a home soon, please give me a call. I can help you through the process as painlessly as possible. Just a tiny bit of patience and a competent professional on your side can make all the difference.
….. You live alone or with one other person (or an extremely small dog) .. or if
….. You don’t have much stuff (barely more than a homeless person) .. or if
….. You miss that cute little apartment you lived in while teaching English in Japan
THEN THIS IS THE PLACE FOR YOU ! !
Some of the home’s features include:
Completely re-done top-to-bottom, front-to-back!
Tumbled stone entrance walk
Renovated bath
Renovated Kitchen with newer stove, new cabinets and new stacked washer/dryer
Bedroom with Murphy Bedd and Built-Ins
Walk out to fenced patio
100 Amp service
2 satellite dishes and receiver
Window air conditioner
It is that time of year where we all make new resolutions. Work out, eat better, increase business, etc. We base our new resolutions on our perfomance of the past year. Those who are truly successful make this ritual mean something. The rest tend to set goals but do not stick with them or see them through. There are those that do not bother to set goals at all.
A friend of mine likes to say, “The definition of insanity is expecting different results from doing the same actions.” That makes sense to me and I like to ponder it when things aren’t going quite as I want them to. It is amusing to think of how many of us set goals at the beginning of the year but fall into our old habits/routines as time goes by, then at the end of the year are disappointed with the results of our year. This is such a common phenomonon that it must be our human nature.
I have been working on my 2008 business plan. I am filled with excitement that the new year holds such limitless possibilites. If you do not set goals then I would encourage you to try it. Those who are really successful in this life are those that set goals and constantly evaluate their progress toward those goals. Without goals, and without seriously working toward those goals, we might find ourselves at the end of 2008 feeling “a little insane”.
I have spent the past couple weeks evaluating 2007. I will use 2007 as a model to evaluate what I should do again this year as well as what I need to improve upon. It is and always will be important to me to do all I can to be prepared to provide my clients the best, most professional service possible. In my assessment of 2007, I am pleased with my ability to have met my goals of continuing my education. I earned the distinguished designation ABR. That is Accredited Buyer Representative. I also finished several classes toward the CRS desination, ( Certified Residental Specialist.) and should be awarded that designation soon.
I care about knowing what I did well and what I need to improve on because success is important to me. I want each and every client to walk out of settlement with a good feeling, knowing that I cared about helping them achieve their goals. That is what I care about first and foremost, helping my clients get what they want and have a good experience achieving it. This business is hard sometimes because it seems the public does not always hold this profession with high regard. I am not really sure why that is but it makes me work even harder to be the best. I know I have changed some opinions already. Each of my clients, so far, have written me outstanding letters of recommendation. Many of them mention that my standard of professionalism changed their minds about this industry. I am glad to be an example for the good that REALTORs® do. I will continue in 2008 to work to educate myself and become even better. As I work on my 2008 business plan, I am trying to anticipate your needs for the coming year. When you are ready and in need of my services, I will be ready.
I guess today we get back to normal after a nice, long vacation. I love Christmas break because it feels like a vacation, but we don’t have to go anywhere. We had a great time together this year. My older daughters have been strung all over the world the past few years so each time we all get together, it feels more and more special. I am sure that will hold true as time goes by and more and more of my kids leave the nest. ( My only son is a Senior in high school so is the next to leave). I saw my oldest daughter and her new husband off to the airport this morning. She is currently the only one very far away, but the departure has left me feeling grateful for Home. This may seem like a personal post but I thought it relevant since I feel the best part of my job is helping people find Home.
Phrases like, “There’s no place like home,” or “Home is where the heart is,” ring true to me as family is so very important. I know that Home can be anywhere as long as loved ones are near, but somehow we grow attached to our houses as we start associating the house as Home? Most of my fondest childhood memories are associated with my favorite childhood house. We moved often when I was young but there was one home that we stayed in for several years. I remember the aromas of that home, I remember the fireplace roaring often, and the good, warm times we had in that home. I am sure most of us can pinpoint one particular house that stands out in our minds as Home more than others.
That brings me to my job. I have helped so many people find new homes. Some people will only look at 2-3 houses and make a decision. Others will look at 10 houses and still not be sure, but something happens when we do walk into the house and they know it is Home. I love that feeling when I get to witness it happen. I can’t really explain what it is. Each client has different needs so the perfect house for one client is not going to have any effect on another client. If you are planning to buy a home in the near future, please give me call. I would love to help you find the perfect house that you can call Home.
