Accepted Offer! Everything’s Set, Right?
Congratulations! You have an accepted offer on your property! So…everything’s all set, right? Well, not exactly…
Unlike other states, an accepted offer in New York is not legally binding. This actually works to the advantage of both parties – the seller is still in a position to consider a better offer if it comes along; and the buyer has an opportunity to thoroughly investigate the property before signing on the dotted line.
So how do you get from an accepted offer to a signed contract? Here’s what has to happen next:
Due Diligence Conducted
After the deal sheet (which summarizes the basic terms of the agreement) is circulated among the agents and attorneys, the buyer’s attorney generally begins the process of conducting due diligence. Due diligence is the way to help you figure out if you’re buying into a property that’s solid or one that has a lot of issue before you sign the contract. This involves, among other things, reviewing the building’s offering plan, financials and the condo or co-op board’s minutes.
If you’re buying a home, then a home inspection is a must as part of the diligence process. However, if you’re purchasing a co-op or condo, whether or not you get a home inspection is entirely up to you and may not be necessary. Check out this post to determine when it makes the most sense to do one.
Negotiation of the Contract
The seller’s attorney will draw up the initial draft of the contract for review and begin negotiations with the buyer’s attorney over the precise terms and any conditions as well as contingencies.
If an agreement is reached on the wording of the contract and the due diligence for the building goes well, the buyer will sign the contract and deliver the contract deposit (usually 10% of the purchase price). The seller will then countersign, making the deal officially binding.
Once you have a signed contract, then you’ll have something to be excited about! There’s a bit more assurance that the deal is going to move forward. However, being in contract doesn’t necessarily mean the deal will make it to the closing table. Your agent will continue to guide you through the remainder of the process to ensure that any potential hiccups are minimized or avoided, allowing you to finally obtain the home of your dreams.
Have more questions about what to expect during the sales process? Feel free to contact me! I’m always happy to help!
Nikki R. Thomas
Licensed Associate Real Estate Broker
The Corcoran Group – Village Office