Buying
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1. Research the Inventory
  Check the Home Search section for the home of your dreams.
2. Create the Offer to Purchaser
  Before the offer to purchase is created, it is very important that you have been at least pre-qualified or better yet pre-approved by a lender. This is one of the best negotiating tool a buyer can have. It shows the seller that you are financially able to purchase the unit. After you have found the right home, it is time to prepare the offer. In Tennessee, the offer to purchase covers all facets of the purchase process, such as:
  • Purchase price

  • Amount and type of earnest money

  • Contingencies (financing, inspection, etc.)

  • Personal items you wish the seller to include (washer/dryer, etc.)

  • Closing date

  • Time limit after which the offer will expire

  • Responsibilities of both buyer and seller

Once you make the offer, we present it to the Seller and their Agent. The Seller may accept it, prepare a counter offer, or reject the offer all together. Once the offer is accepted, it is a legally binding contract.
3. Negotiate with the Seller
  Negotiation begins before we get started looking. A strong position is enhanced by getting pre-qualified for a mortgage. Better yet making the effort to become pre-approved will maximize your ability to strike a deal most favorable to you.

Once we find the right home for you, we will:
  Endeavor to discover prices of similar homes sold in the last 6 months help you compare it to any other units you've looked at evaluate its condition and access the amount of work it needs determine how long it's been on the market and attempt to discover why the Seller is selling, and if the price has been reduced help you affect a strategy using time, price, and terms to your advantage. David will draw from 14 years experience in negotiating real estate transactions always with your best interests in mind.

Whether it's starting with your best offer, saving room to maneuver, compromising, or making concessions to the seller's counter, David can present you with the objectivity to help you make a wise decision.

4. Home Inspection
  We strongly recommend an inspection for every transaction. The home inspection checks the condition of the major systems of the home including the structure's exterior, windows, foundation, roof, garage, electrical, plumbing, heating/air conditioner, attic and basement or crawl space.

If any major problems with the structure or systems of the home are uncovered, you will then have the right to void the sales agreement or to renegotiate the terms of the purchase.

It is recommended that the buyer attend the home inspection. It usually lasts between 2 and 2 1/2 hours. This will allow you to ask questions about repairs and maintenance of the unit. Usually within 48 hours you will receive a written report.

A home inspection usually costs between $200 and $400 and is the best money you will ever spend.

David has the experience with the inspection community to recommend a list of accredited inspectors.

5. Appraisal
  Your lender will order an appraisal of your home and coordinate with your agent to schedule a time for the appraiser to see the unit. The appraisal determines the fair market value of the home and insures the unit is worth the price you are paying in order to secure the loan. The appraisal also helps insure the home meets certain standards regarding its condition. The average costs are $300 for an owner-occupied unit.

If the home does not appraise for the sales price, negotiations will begin with the Seller to adjust the price.

6. Removing Contingencies
  Contingency: The dependence upon a stated event which must occur before a contract is binding.

David Sullivan and his associates use computerized tracking systems to accomplish removal of contingencies in a timely manner. We counsel our clients to carefully consider all aspects of the situation before the contingency is approved as a part of the transaction. Communication and understanding is the key. The following are some common contingencies:

  • Buyer obtaining loan approval

  • Condominium Inspection

  • Sale of Buyer's home
7. Protecting Your Interests
  Serving your interests can best be accomplished by working with an agent with proven integrity and experience. David Sullivan has been recognized in the industry consistently since 1987. He has successfully closed over 1,100 individual transactions for a broad base of experience in all situations. If situations exceed his experience, he will be the first to recommend additional counsel - legal or otherwise.

8. Closing Process & Final Settlement
  What is an Closing?
  Closing is the deposit of documents and funds with a neutral third party with specific instructions as to how they should be disbursed. The Closing Agent acts as the clearing house for the exchange and distribution of those documents and funds in connection with transfer or financing of real property. David Sullivan will attend the closing with you to verify the transaction closes as agreed. The closing officer, an employee of the title insurance company will, acting as a neutral 3rd party, explain the documents and have you sign them. The officer will then assure completion of transaction by delivering to the lender for verification and document recheck and deliver to county for recordation of your deed.

Why is closing important to me?
  Closing, or the services of a qualified closing agent, assures all interested parties that the rules and regulations governing real property transfers will be strictly observed by a neutral third party with an objective interest in completing the transaction. A closing agent represents neither the seller nor the buyer. The closing agent can act only on each party's behalf according to their written instructions.

What closing services are provided by the Title Company?
  The basic definition of an closing agent's responsibility is to accept and hold a deed from the seller in exchange for funds from the buyer. The closing agent will concurrently, when all mutually agreed terms have been satisfied, release the funds to the seller and deed to the new buyer. In most sale transactions, this "simple" process requires the closing agent to perform the following:
  • Order a title report on the subject property and obtain all the necessary information to clear all title defects and satisfy existing liens and encumbrances against the property or the principals involved in the sale;

  • Work with the buyer's lender to insure instructions from the seller, buyer and lender are coordinated;

  • Prepare many of the documents necessary for the transaction and review all others to make certain they conform to the parties' demands;

  • Figure tax and interest prorates and prepare closing instructions and statements for both buyer and seller;

  • Arrange closing appointments for all parties to sign the necessary documents;

  • After taking final signatures, the closing agent has responsibility to complete the transaction by checking all documents for completeness, compliance and accuracy;

  • Return copies of all loan documents to the lender for approval to record;

  • Record all necessary documents in the county where the property is located. This is when the transaction is closed;

  • Disburse all funds out of the closing account according to the signed, written instructions. (These funds could include the seller's net proceeds, the Broker's real estate commission, and other payments required for loan approval or to satisfy other terms of the agreement.)

  • Prepare and distribute final closing statements to all interested parties.

How much does an closing cost and who pays for it?
  In a typical sale transaction, the closing fee is based on the purchase price. Closing fees are a negotiable item subject to agreement between the parties. If the sale transaction involves a federally guaranteed FHA or VA loan, the buyer is not allowed to pay some of the closing fees and these amounts are to be paid by the seller at the closing.

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