Finding the right home is such a relief for buyers who have spent many of their weekends visiting open houses and comparing floor plans. The moment you know that a house is the “one” you’ve put so much time and energy into finding the right one it can be hard to believe that you are still at the beginning stages of the home buying process. To officially secure your new home a potential buyer must submit a purchase agreement.

What is a Purchase Agreement

According to the Cambridge Dictionary a purchase agreement is “a legal document that gives details of the conditions when one person or company buys something from another”. That definition holds true for real estate

purchases as well and the terms of the purchase agreement hold both the buyer and seller accountable throughout the transaction.

Understanding Terms

When purchasing new construction it is important to understand the terms of your purchase. Many questions that may arise could already have an answer in these details. While there are elements of a purchase agreement that are standard, new construction presents a few key elements that need to be accounted for.

• Price | How much a buyer will pay and a seller will accept for the property
• Closing Costs | Expenses incurred above the price to complete a transaction
• Final Design Request Date | Last day design requests can be changed and accepted
• Earnest Money Deposit | Money a buyer will put down to secure the purchase agreement
• Appraisal | An official valuation of a property
• Warranties | A written guarantee pledging to repair or replace defects before a specific date
• HOA | A homeowners association is a community organization that makes and enforces rules for property and residents

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Writing a Purchase Agreement

When writing a purchase agreement it is important to understand the terms above as well as the deadlines associated with them. Missing them can create unwanted delays for both parties. Be sure to communicate your needs with your builder and if you feel overwhelmed by all the paperwork seek the assistance of a Realtor.

Have questions? Email Kelsey! She can provide the details you need from the comfort of your own home.