Illinois Real Estate Transactions Part 1

 Posted on January 12,2015 in Real Estate

Illinois Real Estate Attorney Matthew R Gebhardt discusses the contract negotiating process in Illinois.

So you have found your new home. Next step is to sign the contract and go to the closing right? Unfortunately, buying a home is usually not that simple. In this series of blog posts, Illinois Real Estate Lawyer Matthew R Gebhardt will examine the process of home buying in Illinois from start to Finish.

Part 1:

Contract Negotiation

Once you find the property you wish to purchase, you will have to make an offer. Many things must be considered when determining what amount to offer for a property. Some of the most important are:

1. Property Condition
2. Property Tax Amount
3. Schools and amenities near the property.
4. Commute time to work and schools
5. Neighborhood crime statistics
6. Utility bills
7. Association dues if applicable

Once you have taken all of the above into consideration, you should base your offer on a figure that assumes you will receive no further concessions from the seller. Often times buyers assume a seller will fix a leaning fence or repair bad plumbing. Do not make this mistake. Your offer should assume that you are buying the house in “as-is” condition. Do not make the mistake of over-inflating your offer by 10 thousand dollars because you assume the seller will be undertaking repairs or offering you repair credits. Make and offer that you are comfortable with assuming you are buying the house “as-is”.

Once you have made your offer, you seller gets a chance to review it. They may accept, reject, or make you a counteroffer. This can be a quick process or one that gets dragged out for a while. Be ready for the long haul just in case.

When you and the seller agree to the terms of the contract, your still not quite done (or at least shouldn’t be). It is vital that after you have an accepted offer to purchase the property, you schedule an immediate in depth inspection of the premises with a professional home inspector. DO NOT DO THIS YOURSELF. Home inspectors are objective 3^rd parties who will inspect your perspective home from top to bottom and deliver you an honest assessment of its condition.

Once you have the inspection report, you should discuss your results with your attorney and realtor. They will advise you on items you may want to have repaired or replaced. They will also advise you on items and conditions that show “normal wear and tear” for like properties of size and age and determine how, or if, you should proceed with addressing those items.

Once the inspection is complete, another hopefully brief round of negotiations will take place to determine what if any action the seller will take in response to issues raised by the inspection. This time period is commonly referred to as the attorney review period. Once this phase is complete and an agreement has been met between the parties, you are ready to move on to the next step.

Coming soon: Part 2 “The Loan Process”

Illinois Real Estate Attorney Matthew R Gebhardt discusses the contract negotiating process in Illinois.

If you have any questions regarding real estate transactions in Illinois, please contact my office for a free consultation.