How long does it take to write up a housing purchase contract/agreement?

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Apathizer
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How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

Here's the situation. I have a prospective buyer for my house. They told me they're in the middle of a lease that expires in May and that's when they would like to complete the sale. They told me they're in the process of writing up the purchase agreement or contract since the sale would still be a few months away.

They've had more than a month to draw up this document but haven't. Whenever I inquire they tell me they're working on it. I don't have much experience with real estate but others have told me that a purchase agreement/contract is pretty straightforward and shouldn't take that long.

So I guess I'm wondering if there's a credible reason it's taking this long. Where I live is a Land trust so there is a ground lease. Do you think that might be the issue? Thanks in advance for any info.
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Marseille07
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Marseille07 »

Apathizer wrote: Fri Nov 25, 2022 7:47 pm So I guess I'm wondering if there's a credible reason it's taking this long. Where I live is a Land trust so there is a ground lease. Do you think that might be the issue? Thanks in advance for any info.
No reason, but they aren't rushed because they can't buy now anyway. If I were you I'd keep looking for other buyers and let them know they might miss out unless they hurry their tail.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Sandtrap »

Apathizer wrote: Fri Nov 25, 2022 7:47 pm Here's the situation. I have a prospective buyer for my house. They told me they're in the middle of a lease that expires in May and that's when they would like to complete the sale. They told me they're in the process of writing up the purchase agreement or contract since the sale would still be a few months away.

They've had more than a month to draw up this document but haven't. Whenever I inquire they tell me they're working on it. I don't have much experience with real estate but others have told me that a purchase agreement/contract is pretty straightforward and shouldn't take that long.

So I guess I'm wondering if there's a credible reason it's taking this long. Where I live is a Land trust so there is a ground lease. Do you think that might be the issue? Thanks in advance for any info.
(not enough R/E data and situational data to give a comprehensive suggestion without making a lot of assumptions.)

To OP:
Notes and questions:
1
Is this a FSBO (for sale by owner)?
2
Are you using a listing service?
Is it on the MLS listings?
3
Is your home difficult to sell?
IE: more complex than the average home sale?, etc?
4
Have you had other serious buyers making offers? DROA with earnest money?
5
Are you selling the property outright or "owner finance" or other issue, etc?
6
Are you using or going to use and escrow or title company to handle your close?
7
To answer your question directly, given an average R/E home sale in a neighborhood, etc, with no complexities or issues, a DROA can be written up, earnest money produced, and done inside of an hour if the other side signs off on it. Then it heads to escrow.
**(dis laimer): but. . there are a lot of paths to do this and many experiences so it varies.)

I hope this is helpful.
You can add this data in your original post using the "pencil icon" so the added info doesn't get lost in the thread.

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MillennialFinance19
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by MillennialFinance19 »

Do the sellers have an agent? This would only take a sub-par agent 15 minutes to draft. Find another buyer. You don’t owe them anything until you see a binding offer.
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Gary Guss
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Gary Guss »

I've written them on the hood of a car in 20 minutes, just sayin'

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Re: How long does it take to write up a housing purchase contract/agreement?

Post by 5outof10 »

RE purchase agreements are straightforward if you know what you are doing. If you don't know what you are doing then you get this.

Find a local, reputable real estate attorney (title companies in most states can't draft a purchase agreement because that is the practice of law and requires a law license). Hire them. Meet with them face to face, should be less than an hour. They will ask you a series of questions and then draft the Purchase Agreement. They can have the PA ready for signatures in November for a closing date in May. They can email it (if state law allows e-signatures on real estate contracts).

The PA can read something to the effect of..."this offer expires at 11:59 a.m. Friday, December 2, 2022 unless this Agreement, fully executed by all the Buyers named herein, and all Ernest Money, if any agreed to below, are delivered to Seller's Agent before this time. ----If they don't sign and return then there is your answer. Move on.

Have the attorney complete the closing too. If any contingency, title, or land trust issues come up then they can resolve those for you too.

The lawyer will be a fraction of the cost of a Realtor for the PA nd more knowledgeable too. Also, more ability to fix defects than a title insurance company.

Bring the following to your appointment if you have them or are able to get them from a prior service provider: abstract of title, land trust records, prior title insurance policy, and attorney's title opinion. also, name, address, phone, and email for each buyer.

Make sure, when setting the appointment with the lawyer, you tell them when you need the PA out by.

Good luck!
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by retire2022 »

Op

Most buyers or sellers have an attorney already and those contracts are generally the state's bar approved templates.

A draft contract can be drawn up very quickly.

If no attorney's involved, it is a could be a sign they are not serious.
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MP123
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by MP123 »

They've taken over a month to write an offer on a house they won't close on until May?

No offense meant, but they're wasting your time if you want to sell.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

Thanks for all the info. This sale isn't standard. It's a Land trust facilitated by a not for profit third party. It's structured sort of like a condo. The land is owned by the not for profit and we own the house. There are no real estate agents involved, but there are still all the other costs and legalities of selling.

If there's a complication it might be the land lease related to the not for profit structure. Still, over a month seems like a long time. I don't want to seem like a suspicious pest, but beginning to think they're indecisive or delaying the process.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by celia »

Of course, they're delaying the process, because they aren't serious. I would charge them an upfront fee for keeping it off the market for 6 months, just for them. If they don't agree with that, have them check back with you in May to see if you still own it and are ready to sell.

Meanwhile, sell it to someone else, if you find someone who is willing to agree with the terms you want (one of which is a reasonable close date, like 30 or 40 days after the agreement is signed).
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by spectec »

I sold an inherited property FSBO some time ago. The buyer didn't have an agent, so they asked if I knew how to write up the offer. I downloaded a form from my state real estate board, made a few changes specific to our situation, and we all signed it. I insisted that they hire their own attorney to review it and we would adjust the selling price for half his fee (up to a limit of $XXX). He suggested few small changes, which were to the buyers' benefit and which I thought were reasonable, and we moved on to inspection, funding, and closing.

The point is, it can be done but not by sitting on your hands. If you take the initiative and the buyer doesn't respond, then as someone else has suggested, you never had a serious buyer in the first place. May as well find that out now rather than hold onto false hope. Meanwhile, keep the property on the market to increase your odds of finding a real buyer. (Hopefully you haven't made any promises to the present buyer that might complicate abandoning them if another one comes along)
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by theplayer11 »

I wouldn't wait until May if you are ready to sell now. Who knows what the market and interest rates will be.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by ResearchMed »

Why do YOU want to wait to sell the house until May?
You told us why the buyer wants to do this, but "what's in it for you?"
Did you actually have the house on the market?

I guess I don't understand why *you* want to wait until May. A lot of things can happen before then, not all of them conducive to a smooth closing at that time.
And even if you do manage to get a proper P&S signed with a May closing, that doesn't guarantee a closing then. There could be penalties for the buyer if they don't complete the sale at that time, but what those penalties are... won't be known until the actual contract is signed. But the deal is probably more likely to fall apart over the P&S... but they are stringing that out.

Why aren't you keeping the house on the market until you have a firm offer in front of you, probably one with a closing well before next May... unless you let this thing keep dragging...

Whatever special issues there are revolving around the land trust (which is something I do not know about), presumably they would apply to some other buyer, too. That means that even if you found another buyer now, there could be a delay. That's IF that is actually the reason the the current delay.

Bottom line: Why are you allowing this to slide, and to agree to a May closing in the first place?

RM
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by jfn111 »

Apathizer wrote: Fri Nov 25, 2022 7:47 pm Here's the situation. I have a prospective buyer for my house. They told me they're in the middle of a lease that expires in May and that's when they would like to complete the sale. They told me they're in the process of writing up the purchase agreement or contract since the sale would still be a few months away.

They've had more than a month to draw up this document but haven't. Whenever I inquire they tell me they're working on it. I don't have much experience with real estate but others have told me that a purchase agreement/contract is pretty straightforward and shouldn't take that long.

So I guess I'm wondering if there's a credible reason it's taking this long. Where I live is a Land trust so there is a ground lease. Do you think that might be the issue? Thanks in advance for any info.
I'm a little confused when you say Land Trust. Here in MN Land Trust homes are sold for under market value with strict income requirements. The home owner never owns the land and has to follow the "Trusts" rules for resale and share profit with them. It's a little more complicated process then drawing up a 20 minute purchase agreement.
(Maybe your area has a different definition of Land Trust).
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

jfn111 wrote: Sat Nov 26, 2022 7:43 am
Apathizer wrote: Fri Nov 25, 2022 7:47 pm Here's the situation. I have a prospective buyer for my house. They told me they're in the middle of a lease that expires in May and that's when they would like to complete the sale. They told me they're in the process of writing up the purchase agreement or contract since the sale would still be a few months away.

They've had more than a month to draw up this document but haven't. Whenever I inquire they tell me they're working on it. I don't have much experience with real estate but others have told me that a purchase agreement/contract is pretty straightforward and shouldn't take that long.

So I guess I'm wondering if there's a credible reason it's taking this long. Where I live is a Land trust so there is a ground lease. Do you think that might be the issue? Thanks in advance for any info.
I'm a little confused when you say Land Trust. Here in MN Land Trust homes are sold for under market value with strict income requirements. The home owner never owns the land and has to follow the "Trusts" rules for resale and share profit with them. It's a little more complicated process then drawing up a 20 minute purchase agreement.
(Maybe your area has a different definition of Land Trust).
Yes, that's exactly my situation. The prospective buyer has already qualified, and the sale price is restricted, so there's no negotiation. Do you think the land trust issues might be complicating things?
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by retire2022 »

Apathizer wrote: Sat Nov 26, 2022 1:31 pm Do you think the land trust issues might be complicating things?
As someone who has worked in local and state government where issues of ownership are governed by land trust, I would seek who is the entity which owns or regulates the land trust to opine.

I am not an attorney, but that government entity (regulatory agency) should have a representative, agent, manager or attorney to opine.

Usually, the county government where the property is located would have a Recorded Regulatory Agreement on their respective database, and that is normally a public document and should be able to review by the respective seller or buyers.

Only you can locate this information to present for Bogleheads to opine.

The government agency and or landlord or managing agent should be your liaison and your interface as BH would NOT be familiar with deposition or sales of property, if your theory that the holdup is on the land trust.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

retire2022 wrote: Sat Nov 26, 2022 2:37 pm
Apathizer wrote: Sat Nov 26, 2022 1:31 pm Do you think the land trust issues might be complicating things?
As someone who has worked in local and state government where issues of ownership are governed by land trust, I would seek who is the entity which owns or regulates the land trust to opine.

I am not an attorney, but that government entity (regulatory agency) should have a representative, agent, manager or attorney to opine.

Usually, the county government where the property is located would have a Recorded Regulatory Agreement on their respective database, and that is normally a public document and should be able to review by the respective seller or buyers.

Only you can locate this information to present for Bogleheads to opine.

The government agency and or landlord or managing agent should be your liaison and your interface as BH would NOT be familiar with deposition or sales of property, if your theory that the holdup is on the land trust.
Thanks. The land trust director serves as our liaison and intermediary. I emailed him recently on what might be happening, but he hasn't responded, probably since it's the weekend. Hopefully he'll respond Monday. Thanks again.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

Update. The prospective buyer told me their real estate agent was out of town for a couple weeks during Thanksgiving, but expected them back this week. So far I haven't heard anything from them. So far the overwhelming consensus is that a purchase agreement is a standard, simple form that can be composed quickly. I plan to meet with a real estate agent next week to see if they can figure out what's going on, and will consider just selling through them as efficiently as possible.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by ResearchMed »

Apathizer wrote: Fri Dec 02, 2022 1:01 am Update. The prospective buyer told me their real estate agent was out of town for a couple weeks during Thanksgiving, but expected them back this week. So far I haven't heard anything from them. So far the overwhelming consensus is that a purchase agreement is a standard, simple form that can be composed quickly. I plan to meet with a real estate agent next week to see if they can figure out what's going on, and will consider just selling through them as efficiently as possible.

I find it strange that they are only now mentioning that their agent was out of town "for a couple of weeks during Thanksgiving", rather than letting you know about that at the start.

This all sounds a lot like delay, delay, delay which will not help you at all, but certainly seems to help them force the timing they wanted.

Is this by far the best offer, or the only one? What about other potential buyers? That wasn't clear... why the long delay is good for you, or was no one else interested?

RM
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by bradinsky »

Go see an attorney & have them create a purchase agreement for you. That way, your attorney can make sure that what you sign is something that you’re in agreement with. If you sign a sales agreement from the buyer & don’t take the time to read carefully, or pass on having an attorney review it, you might possibly miss something. I’m not necessarily a fan of attorneys, but they a be invaluable to people involved in real estate transactions. Money well spent as the money involved in those transactions increases.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

ResearchMed wrote: Fri Dec 02, 2022 8:11 am
Apathizer wrote: Fri Dec 02, 2022 1:01 am Update. The prospective buyer told me their real estate agent was out of town for a couple weeks during Thanksgiving, but expected them back this week. So far I haven't heard anything from them. So far the overwhelming consensus is that a purchase agreement is a standard, simple form that can be composed quickly. I plan to meet with a real estate agent next week to see if they can figure out what's going on, and will consider just selling through them as efficiently as possible.

I find it strange that they are only now mentioning that their agent was out of town "for a couple of weeks during Thanksgiving", rather than letting you know about that at the start.

This all sounds a lot like delay, delay, delay which will not help you at all, but certainly seems to help them force the timing they wanted.

Is this by far the best offer, or the only one? What about other potential buyers? That wasn't clear... why the long delay is good for you, or was no one else interested?

RM
It's weird situation. It's a Land trust that's income qualified so there's a maximum amount I can sell for. I've mostly been trying to sell via a word of mouth rather than using an agent since I won't really have to negotiate price. But that's proven problematic so I think I will use an agent.

When they first told me they were planning to write a purchase agreement a few weeks ago they didn't mention that their agent would be out of town for a couple weeks during Thanksgiving.

Right now we'll just see what happens after I talk with a real estate agent.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by stan1 »

You don't need a real estate agent since you have a buyer. Use an attorney especially since this seems to be a very specialized type of sale.
If you want to list the property, advertise it, and get potentially more offers then consider a realtor.

This seems like it might be a very specialized situation, so you'd also want to learn more about how other sales nearby have been transacted. General purpose advice might not apply to your situation.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by bradinsky »

Apathizer wrote: Fri Dec 02, 2022 8:36 am
ResearchMed wrote: Fri Dec 02, 2022 8:11 am
Apathizer wrote: Fri Dec 02, 2022 1:01 am Update. The prospective buyer told me their real estate agent was out of town for a couple weeks during Thanksgiving, but expected them back this week. So far I haven't heard anything from them. So far the overwhelming consensus is that a purchase agreement is a standard, simple form that can be composed quickly. I plan to meet with a real estate agent next week to see if they can figure out what's going on, and will consider just selling through them as efficiently as possible.

I find it strange that they are only now mentioning that their agent was out of town "for a couple of weeks during Thanksgiving", rather than letting you know about that at the start.

This all sounds a lot like delay, delay, delay which will not help you at all, but certainly seems to help them force the timing they wanted.

Is this by far the best offer, or the only one? What about other potential buyers? That wasn't clear... why the long delay is good for you, or was no one else interested?

RM
It's weird situation. It's a Land trust that's income qualified so there's a maximum amount I can sell for. I've mostly been trying to sell via a word of mouth rather than using an agent since I won't really have to negotiate price. But that's proven problematic so I think I will use an agent.

When they first told me they were planning to write a purchase agreement a few weeks ago they didn't mention that their agent would be out of town for a couple weeks during Thanksgiving.

Right now we'll just see what happens after I talk with a real estate agent.
OP,
You might be money ahead talking with an attorney. They probably will charge an hourly fee verses a real estate agent getting a percentage.
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Apathizer
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

bradinsky wrote: Fri Dec 02, 2022 8:47 am
Apathizer wrote: Fri Dec 02, 2022 8:36 am
ResearchMed wrote: Fri Dec 02, 2022 8:11 am
Apathizer wrote: Fri Dec 02, 2022 1:01 am Update. The prospective buyer told me their real estate agent was out of town for a couple weeks during Thanksgiving, but expected them back this week. So far I haven't heard anything from them. So far the overwhelming consensus is that a purchase agreement is a standard, simple form that can be composed quickly. I plan to meet with a real estate agent next week to see if they can figure out what's going on, and will consider just selling through them as efficiently as possible.

I find it strange that they are only now mentioning that their agent was out of town "for a couple of weeks during Thanksgiving", rather than letting you know about that at the start.

This all sounds a lot like delay, delay, delay which will not help you at all, but certainly seems to help them force the timing they wanted.

Is this by far the best offer, or the only one? What about other potential buyers? That wasn't clear... why the long delay is good for you, or was no one else interested?

RM
It's weird situation. It's a Land trust that's income qualified so there's a maximum amount I can sell for. I've mostly been trying to sell via a word of mouth rather than using an agent since I won't really have to negotiate price. But that's proven problematic so I think I will use an agent.

When they first told me they were planning to write a purchase agreement a few weeks ago they didn't mention that their agent would be out of town for a couple weeks during Thanksgiving.

Right now we'll just see what happens after I talk with a real estate agent.
OP,
You might be money ahead talking with an attorney. They probably will charge an hourly fee verses a real estate agent getting a percentage.
Thanks, I'll look into that.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by MikeG62 »

Apathizer wrote: Fri Dec 02, 2022 1:01 am Update. The prospective buyer told me their real estate agent was out of town for a couple weeks during Thanksgiving, but expected them back this week. So far I haven't heard anything from them. So far the overwhelming consensus is that a purchase agreement is a standard, simple form that can be composed quickly. I plan to meet with a real estate agent next week to see if they can figure out what's going on, and will consider just selling through them as efficiently as possible.
I do not think they will buy it. Seems they are stalling, perhaps while looking at other properties. Give them a deadline to draw up the contract (like one week) or better yet have your lawyer draw one up. In my experience with housing (I've bought four of them over 35 years), the contract was always drafted by the sellers attorney. If they pass, at least you will have the contract ready to go.

Good luck.
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valleyrock
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by valleyrock »

If a person is serious about buying, they will make a written offer. The offer is in the form of a contract, a formal offer to purchase, a standard form, signed by them, asking you to respond by signing it, yourself, if you so choose.

Have a lawyer draw one up? "a standard, simple form that can be composed quickly" No, I don't think so.

In every state I'm familiar with, the standard "offer to purchase" form that everyone uses is available online, usually via the local real estate board.
You don't need to pay an attorney to compose or draw up the standard form. And, as above, you don't need to do anything except wait for the buyer to make the formal, written offer. (Sure, you can negotiate terms, the price, etc. before that. And/or you can negotiate after that, as well.)

HOWEVER, it sounds very much like you need an attorney to review the offer to purchase contract after you've received it from a buyer, so you can make adenda and modifications appropriate to your situation and needs, make sure components of the land trust aspects are properly referenced/included, etc.

By and large, it's buyers who use attorneys for real estate transactions. BUT, I've also hired real estate attorneys as a seller, as well, at a flat rate. (I think it was $500 or so one time. Well worth it.) A seller's attorney can answer your questions, review and weigh in on the contract, etc., make sure the process is being properly followed, etc.

One thing I learned the hard way when I sold once: the buyer (a person in law school) was very clever and finagled the process so that my attorney handled the closing. He went along with it, but he didn't like it. I had just hired him to answer any questions I had along the way. The buyer should have gotten their own attorney to manage the process, do the closing, etc.

Pro tip: Do read every word of the offer to purchase contract. Make sure you understand all the why's and wherefores. You are signing it. Some things on this contract are left blank, to be filled in. You don't have to go along with what the buyer fills in re dates, amounts, all that. For example, you can ask for a higher deposit/earnest money than they are offering, modify the dates for various milestones, etc.

Other pro tip: A very big deal, one that most people won't think of, but which can really be of help. Do a search on the county court's web site, the civil court, and maybe the criminal court, for grins. (Include nearby counties, as well.) Do this on google also. Search up the names of the people involved. Odds are, there's nothing there. On the other hand, you could find out that the people involved have been involved in all manner of litigation regarding property disputes of one form or another. That doesn't necessarily exclude them, but it does show where you need to really understand how to manage the process from a legal standpoint. Things such as making notifications with "proof of mailing," and the like are not trivial matters when dealing with someone who would just as soon take you to court as spit. It's a hobby for some people.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Clemblack »

I've bought and sold many houses with and without real estate agents. In my opinion, they are not going to buy it. I would list it if you want to sell.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by J295 »

Call them and discuss
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

Well they finally sent me a purchase offer. :happy

I had my agent read it and she said it generally looks fine, but favors the buyer. She suggested we respond with some minor changes to make it more equitable. I think they'll probably accept and hopefully I'll be on my way. :D
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MikeG62
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by MikeG62 »

Apathizer wrote: Fri Dec 09, 2022 9:27 pm Well they finally sent me a purchase offer. :happy

I had my agent read it and she said it generally looks fine, but favors the buyer. She suggested we respond with some minor changes to make it more equitable. I think they'll probably accept and hopefully I'll be on my way. :D
I live in the north east. My wife and I have bought a total of five homes over the years (one in NY and four in NJ) and the contract of sale was always drawn by the sellers attorney.

Your situation seems highly unusual to me. I would not want the buyer to control the contract drafting or even draw up the 1st draft. There is no doubt it will favor them and will likely involve more haggling than would be the case had your attorney drafted it in the first place.

Is this common in the state where you live?
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Outer Marker
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Outer Marker »

There's no need to pay a real estate agent or an attorney to close this deal. These are simple form contracts that should take no time at all to draw up. Buyer is dragging their feet and is enjoying a free option on your property. I would simply give them a deadline: if you don't have a contract and earnest money deposit in 2 weeks, you're going to list it.

If you do need to list it, I'd recommend using a "1%" sellers agent like Ideal Agent or Clever. Seller's agents add little value to the process, and they're all going to give you the same advice on decluttering, repainting, etc. Anyone can take decent photo's, write a description and post it to the websites. 1% is enough compensation for that. The Buyer's agent enables the transaction - so you'll need to pay them the standard 3% commission on that side if you want your property to be recommended to the buyer's agent clients.
Gardener
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Gardener »

Are there so few buyers for what you are selling that you are even considering this?

I hope you haven't turned down other prospective buyers while waiting for these tire kickers. I would bet a lot of money that these tire kickers will not ultimately be your buyers.
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Marseille07 »

Apathizer wrote: Fri Dec 09, 2022 9:27 pm Well they finally sent me a purchase offer. :happy

I had my agent read it and she said it generally looks fine, but favors the buyer. She suggested we respond with some minor changes to make it more equitable. I think they'll probably accept and hopefully I'll be on my way. :D
When are they going to buy your place? Are you seriously cutting a deal now for next May?
michaeljc70
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by michaeljc70 »

Apathizer wrote: Fri Dec 09, 2022 9:27 pm Well they finally sent me a purchase offer. :happy

I had my agent read it and she said it generally looks fine, but favors the buyer. She suggested we respond with some minor changes to make it more equitable. I think they'll probably accept and hopefully I'll be on my way. :D
I'd say so...closing in May and it is now December?

Does it have a mortgage contingency? What if you wait 6 months and then they cannot get a mortgage? Did they have an inspection? Are they going to do that in May and then beat you down on the price or get out of it based on the inspection? I'd make sure this contract is solid given the long closing time.
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Apathizer
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

michaeljc70 wrote: Sat Dec 10, 2022 9:50 am
Apathizer wrote: Fri Dec 09, 2022 9:27 pm Well they finally sent me a purchase offer. :happy

I had my agent read it and she said it generally looks fine, but favors the buyer. She suggested we respond with some minor changes to make it more equitable. I think they'll probably accept and hopefully I'll be on my way. :D
I'd say so...closing in May and it is now December?

Does it have a mortgage contingency? What if you wait 6 months and then they cannot get a mortgage? Did they have an inspection? Are they going to do that in May and then beat you down on the price or get out of it based on the inspection? I'd make sure this contract is solid given the long closing time.
They're in a lease until May, that's why they want to complete the sale at that time. They've been approved for a mortgage. It's an unusual situation in that it's a land trust with a price cap, and they're offering the max allowable price, so there's no negotiating. I got an agent since I don't know much about real estate. Her 1% fee seems very reasonable, esp since the sale price is $200K. $2K is reasonable for piece of mind.

The purchase agreement includes earnest money they lose if they pull out. I don't mind waiting until May since May/June is a good time to move.
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Apathizer
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by Apathizer »

Just a quick update. Everything is falling into place for closing in late May.

I'm so excited :D It looks like I can rent a newer studio apartment for about $1,000 a month. My current monthly housing expenses are about $1,500 a month. So in addition to getting a pretty decent lump of money from my house sale, when I move I'll be saving money.

I'm so looking forward to escaping the soul crushing burden of homeownership! :D :D :D :D
ROTH: 50% AVGE, 10% DFAX, 40% BNDW. Taxable: 50% BNDW, 40% AVGE, 10% DFAX.
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ResearchMed
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Re: How long does it take to write up a housing purchase contract/agreement?

Post by ResearchMed »

Apathizer wrote: Thu Apr 06, 2023 6:43 pm Just a quick update. Everything is falling into place for closing in late May.

I'm so excited :D It looks like I can rent a newer studio apartment for about $1,000 a month. My current monthly housing expenses are about $1,500 a month. So in addition to getting a pretty decent lump of money from my house sale, when I move I'll be saving money.

I'm so looking forward to escaping the soul crushing burden of homeownership! :D :D :D :D

What good news!
Thanks so much for the update.
Please keep us posted when it actually closes.

It didn't seem that promising several months ago, so this is really good to hear!

Enjoy!

RM
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