Final Acceptance is Signed - Now What?

Posted by Jerad Cox on Thursday, August 13th, 2015 at 2:54pm.

Real Estate Contract

Prime Edmonton Real Estate - Completing the final acceptance on a home is one of the best feelings for a home buyer. It is exciting, terrifying, and every emotion in between. This is because the dream of buying a home is now much more real.  What many home buyers also need to know is that the process has not stopped there. There is still a lot of work to be done to help protect yourself in your home purchase while staying away from any potential issues.

There are 3 primary areas to work out during the 'pending' period that needs your attention as a buyer. They are 1) ensuring that you get the financing that works for you, 2) making sure that you have detailed information on the home structure itself, and 3) for condo buyers, making sure that you receive and read all condo documents to make sure that the complex is healthy.

Securing Home Financing

The first thing that you will want to do once final acceptance occurs is to get the contract and property information to your mortgage professional to secure funding. This is especially true for those who are getting CMHC insurance, as your mortgage pro will also need to get approval for both the property and you as a buyer. Many home buyers become confused with this stage of the financing because they tell me "I have already been pre-approved, so why do I need to get another approval?". Look at it in this regard; getting a preapproval is like writing your name is the sand - it can always be erased because of other circumstances. Getting a final approval is like writing your name in cement - it's there for the long haul. Banks don't like working in hypotheticals, which they do in pre-approval. They only like working with hard numbers and specific properties.

Getting More Details on the Home

I almost always suggest that a home buyer hire a certified, professional home inspector to come and do a thorough, objective analysis of the property and identify any red flags that would cause issues should you purchase the home . Another option I have seen is that a buyer will come and have independent tradesmen (electrician, plumbers/HVAC pros, etc.) come and inspect the property individually. However, this can be very time consuming and expensive compared to having an inspector come in. In either situation these professionals can provide a more objective view of the home as well as its strengths, challenges, or problems. As a side note, I do not refer my clients to a home inspector. I did in my first few years a s a Realtor, but heard an interesting comment on the radio from Shell Bussey that made me change my policy. He stated that "It is an inherent conflict of interest for a Realtor to refer an inspector to a buyer because the inspector knows that if their inspection results I a deal collapsing, that that Realtor may never call him again". I have not referred an inspector since I heard those comments

Condo Checkup

When buying a condominium, it is vital that the buyer include the Condo documents condition in the contract to protect themselves. This package is a series of documents, bylaws, financial statements, and supporting documents that give a health report to a prospective buyer. This is probably the #1 mistake buyers make - not reading through the entire condo information package. It can range anywhere from 75 to 300 pages. I get how that can be daunting; however, having to get rid of a pet because the complex doesn't allow them or having to pay thousands of dollars in a special assessment that was discussed in the documents is a much more painful alternative. It should also be noted that there is now a service out there that will read the documents for you and provide a summary for you. Although I have never had any of my clients use this service, it is important to note that it is available.

Although final acceptance of an offer on a home is definitely an exciting step, it is also the beginning of a lot of work to help ensure that the choice that you have made in a home is the right one.

2 Responses to "Final Acceptance is Signed - Now What? "

The Ultimate Edmonton Home Buyers Guide wrote: [...]possession day, condition day, and appliances included) will guide you through this process.
Final acceptance - now the work begins! Having an offer accepted begins the next stage of home buying. This is where[...]

Posted on Saturday, January 23rd, 2016 at 3:11pm.

To Waive or Not to Waive...Home Buyers Conditions wrote: [...]Links

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Posted on Friday, January 29th, 2016 at 8:34am.

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