Negotiations begin once an offer has been presented, but until it has been accepted and agreed to by both parties, it remains in the negotiations stage unless one rejects the offer or counteroffer outright. It’s important to remember a few things at this stage:

• Because your attorney has a limited time to protect your interests, have him review your contract quickly.
• A buyer typically accompanies a home inspector to the inspection. Allow approximately two to three hours for the inspection. Your attorney and I (as your Realtor) will work together to negotiate repairs noted during this inspection. And if a final walk-through is in the contract, I will schedule this. You can expect the property to be in the same condition or better than it was when the contract was signed.
• I will handle the details and coordinate the process so you can relax and enjoy the experience.

Buyers closing costs, what to expect

• Down payment
• Loan origination fees
• Points (or loan discount fees) you pay to receive a lower interest rate
• Appraisal fee
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording fees
• Title insurance policy premiums
• Survey
• Inspection fees (including building inspection, termite inspection, etc.)
• Notary fees
• Proration for your share of costs such as utility bills and property taxes

Documents you should keep

• The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You’ll need this for income tax purposes and when you sell the home.

• The Truth in Lending Statement summarizes the terms of your mortgage loan.
• The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
• The deed transfers ownership of the property to you.
• Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
• Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association’s rules and restrictions.
• Insurance policies provide a record and proof of your coverage.

These documents are important aspects to the purchase of your home and some may be necessary when selling it.

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