Buying & Selling Process in Massachusetts
Here in the Bay State we use an offer form to present buyers' initial
offers to sellers. Most states go directly to Purchase and Sales
contracts. We go to Purchase and Sale contracts only after inspections and
negotiations have been completed.
Let's use a typical scenario:
DAY 1: The buyer (who should be either pre-qualified or pre-approved by a
mortgage broker) will
submit an offer stating,
- the description of the property,
- listing exclusions,
- the earnest money amount,
- the amount to be presented upon signing of P&S (Purchase and Sale),
- the date for signing of P&S,
- the closing date,
- and a time limit for a response from the seller.
Attached to this offer is a list of addenda. These include:
the structural inspections (including sewerage, water, pest, lead paint,
radon) to be completed within 10 days of the offer,
the mortgage contingency (including the amount, the date of application,
the commitment date, and the closing date),
if the house was built prior to 1978, a federal lead paint notification
should be attached.
Now is the time for negotiations. Through the brokers the two parties will
come to an agreement, sign the offer and the earnest money will be
deposited with the listing agency's escrow account.
Usually within 10 days the buyers will have the inspections completed. If
there are serious structual defects, the buyers can request that they be
resolved or they can exercise their option to withdraw from the deal.
There is an emphasis here on SERIOUS DEFECTS. Burned out light bulbs, etc,
are not considered serious defects.
DAY 16: After all parties are happy with the P&S, they all sign...usually
the buyers sign first, then the sellers. The buyers now write another
check, usually 5% of the selling price including the earnest money. This
money goes in the escrow account of the listing agency.
DAY 17: Now the buyers complete the mortgage application as per the offer
and P&S.
DAY 47: The buyers mortgage commitment is due. Some mortgage companies
can do this more quickly than others. Sometimes there are additional
conditions to be met by the buyer.
DAY 50-60: The closing is scheduled and takes place. Here's where the
buyers get writers' cramp from signing so many papers.
Remember this is just generic example of how the actual purchase goes.
Each purchase is unique and some of the time frames may vary. If you have
any questions regarding this process or any questions about something else,
don't forget to contact us on the Questions page.
If you ARE thinking of selling, visit my
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