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I.     Property  Address

II.    Purchase Price based on the following considerations:

       (Remember all items are negotiable- meaning either the seller or buyer may pay for any of costs or

       expenses related to the sale- and this depends upon the parties agreeing to the payment of these costs

       also the type of loan a buyer is obtaining, because i.e. , in a VA or FHA type loan, the guidelines will or will

       not  allow the buyer or seller to pay a particular costs or may limit the amount of the expense too- Different

       loans are different in these ways.)

       A)   Value of the property according to you and according to the past sales of like property in near area

       B)   The payment of the following potential costs to close including costs associated to the loan:

              Customary Seller Costs in this region:

                    In a CASH or FINANCED SALE:

                   1)   Preparation of the new Warranty Deed

                   2)   Wood Destroying Insect Report (completed prior to close & good for 30 days)

                         This report is only necessary or required in a sale that includes a new loan.

                          In a cash sale this report is optional, not a requirement, for the buyer.

                   3)   Seller portion of the pro-rata taxes (in other words: their share of the property taxes from the

                          beginning of the year until the day of closing & the buyer is responsible for the property taxes from

                          the day of close to the end of the taxable year.)

               Customary Buyer Costs to close:

                   In a CASH or FINANCED SALE:

                  1)   Title Search, also known as the Abstract

                  2)   Attorney Fee

                  3)   Recording of the new warranty deed. (Very important that the deed gets recorded. It is the

                         document that proves your ownership.) The county and the city have separate recording fees. If the

                         property is located only in the county, then you only pay the county fee, but if it lies within the city, a

                         fee for the county and the city will apply.

                   OTHER COST TO CLOSE THAT MAY APPLY TO EITHER THE SELLER OR THE BUYER:

                   1)   Courier Fee (commonly known as an over-night mail package or paid courier-driver fee)

                   2)   Recording of the pay-off or removal of a lien or other encumbrance on the title of the property and

                          belonging to the seller or buyer.

                   3)   Inspection costs for various types of property inspections (however, usually associated with the buyer.)

                Customary Buyer Costs to close:

                   In a FINANCED SALE:  (all of these will be provided to you by your lender on a "Good Faith Estimate")

                 1)  Loan Origination Fee

                 2)  Loan Discount

                 3)  Appraisal Fee

                 4)  Credit Report

                 5)  Lenders Inspection Fee

                 6)  Mortgage Broker's Fee

                 7)  Tax Related Service Fee

                 8)  Processing Fee

                 9)  Underwriting Fee

               10)  Wire Transfer Fee

               11)  Flood Check

               12)  Doc Prep Fee

               13)  Closing or Escrow Fee

               14)  Document Prep Fee

               15)  Notary Fee

               16)  Attorney Fee

               17)  Title Insurance

                               Lenders Coverage

                               Owner's Coverage

                18)  Interest for one year plus a possible few extra months

                19)  Mortgage Insurance Premium

                20)  Hazard Insurance Premium (commonly known as your home owner's insurance)

                21)  VA Funding Fee (if applicable)

               22)   Hazard Insurance Premium Reserves (additional months required by lender for cushion)

               23)   Mortgage Ins. Premium Reserves (additional months required by lender for cushion)

               24)   School Tax

               25)   Property Taxes and Assessment Reserves (additional months required by lender for cushion)

               26)   Flood Insurance Reserves (additional months required by lender for cushion)

              27)   Home Owner's Association Dues (if applicable)

    III.  Closing Date  

          When choosing a close date, remember, the title search work may take a few days, so allow several days for the  work

          to be completed. If there is a new loan involved, more time needs to be given for appraisals, underwriting, ect.

         (usually a three weeks or more is great)

          Take into consideration, the seller will have an interests in the date to close, so negotiating a date to close that meets

          all the parties involved will need to be necessary. A short close date may work for some, because the property may be

          vacant or the seller may be motivated and flexible, but a long close date may or may not work for some sellers either.

          A seller usually wants to sell and sell sooner than later, so a long date may be tougher to negotiate. Owner-Occupant

          Sellers may need some reasonable time to pack and move. Some sellers don't want to move until they are absolutely

          sure the sale is going to happen or has occurred. Closing then may be negotiated for one day and occupancy date may

          be negotiated for another.

          When would you like to close if you were the seller and what concerns would you have?

     IV.  Inspections that are important to you as a buyer

          Inspections should be performed as early as possible, once the offer has been accepted. One needs to decide if they

         are moving forward with the sale or cancelling the purchase agreement due to issues related to the inspection reports.

         There are different types of inspections, as listed in the table above, and lenders and buyers may have preferences.

         A customary time given to complete  the professional home inspection will be performed within the first 10 days from

         acceptance.  The inspection fees are not necessary included in the costs to close, but are paid in full at the time of the

         inspection or with any other terms acceptable between the buyer and the inspector.

   v.   Contingencies

        Our offers have provisions built in for the contingencies of the following:

        1)   Financing

        2)  Wood destroying Insects

        3)  Appraisal value of the property meeting the sales price

        Any and all other contingencies, such as the satisfactory results of a professional home inspection, can be  written into

       the agreement.

    VI.   Inssues related to the condition

           Mold, Lead-Based Paint, Toxi or hazardous materials, Asbestoes, Radon Gas, and several others are to be

          considered. Inspections for these and other issues are available to a potential buyer.  Other issues, such as building

          code compliance or ordinances,  zoning  ordinances, home owner's asssociation dues and neighborhood covenants

          should be considered.

         Ask yourself what is important to you. Do you care if a sex offender lives in your neighborhood? A buyer should be

        informed and should find the answers to the important questions before entering into a purchase agreement for property.

   VII.  Who pays for what and when

          The purchase agreement should spell out, in writing, who is paying for what of the costs listed in item II, B above and

          any other costs or payments personal items, such as furniture, boats, cars, equipment, ect.

For all other issues or costs to be considered when buying real estate can and should be discussed in depth with the real estate professional, tax advisor, attorney, and the appropriate and authorized parties. This document is to be used as a guide and is a sampling of the ideas and terms to be considered in a real estate transaction. The reader accepts the article as a tool and does not hold the writer,  Avery Gilliam Real Estate, Michelle Gilliam, associate salespersons, or any other associated members liable for results due to the use of these ideas and terms considered herein.

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