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Contract
Procedures, Q&A, Updates
Until the property
is under contract, please refer to this page for daily status info.
The Q&A and status will be updated as required.
For the next
few days, due to my showing schedule and the activity on this property,
it's likely that I'll have difficulty answering emails and connecting with
you. I appreciate your patience.
Contract
Procedures
Texas licensees must
provide a standardized contract form promulgated by the Texas
Real Estate Commission. It is designed to be a simple fill-in-the-blank
form. I'm providing one mostly filled out and at the top of this page for
you to download. The blanks I've filled in reflect the Seller's basic
concerns at this time; things can change, but probably won't change much.
I can help you with any questions.
Your offer will be
presented to the seller after you have submitted it to me along with earnest
money, typically 1% of the selling price. If you wish to have the
property inspected or otherwise evaluate it, you can additionally submit
an option fee (typically $100, non-refundable) that buys you the right
to back out of the contract for no reason at all within a
reasonable period of time, typically 10 days. See page 7 of the contract.
Personal checks are ok. Upon execution of the contract, earnest money
will be turned over to the title company, and option fee given to the Seller.
This means that you
can enter into a contract to purchase, even though you don't have all your
questions answered. If you change your mind, you can back out during
the option period and get your earnest money back, just not the option
fee.
If you want to read
in more detail how all this works, click
here:
Contrary to the Seller's
disclosure above, the Seller does not wish to include the washer,
dryer and refrigerator at this price. Also the Seller requests to
have two weeks after closing to move out. These points are addressed
in the contract form filled out above.
To submit your
offer, fill out the unfilled blanks on the contract form (PDF
above). Nothing on page 8 needs to be filled out at this time.
Sign at the three places where I've provided X's, initial within the circles
I've provided and any changes you make.
Send this form to
me, along with the signed Seller's Disclosure (see PDF above). Earnest
money check is made to Alamo Title Company, option fee to Rebecca Burlin.
You can fax the papers,
attention Tom Polk, to 512-327-3644. I can present the offer to to
the Seller only after earnest money and/or option fee has been received;
I recommend overnighting the funds and your originals.
Overnight the checks
to:
Tom Polk
c/o Stanberry &
Assoc., Inc.
1101 S. Capital
of Texas Hwy. Ste. 100-F
Austin TX 78746
It's totally within
the Seller's control whether and how she wants to respond to your offer.
Q
& A
Questions are in
bold.
April 8, 2004,
6:15 pm
Multiple offers received
and presented to Seller; Seller chose one with 10 day option period starting
today. Property is now under contract.
April 7, 2004,
11:40 am.
Who do I make
the checks to?
Earnest money check
is made to Alamo Title Co.
Option fee to Rebecca
Burlin
Mail checks to:
Tom Polk
c/o Stanberry &
Assoc., Inc.
1101 S. Capital
of Texas Hwy. Ste. 100-F
Austin TX 78746
April 6, 2004,
Q & A
Why is the seller
selling ? How long did she have it on the market to lease out? I
assume it did not?
The Seller bought
this property in expectation of having a family member live there with
her. This is no longer the plan, and she no longer needs this property.
She has a lot of equity, she can sell it immediately, and that's what she
wants to do. So she reduced the price for a quick sale.
The property has
been on the market 83 days for sale, two days at the discounted price.
How close is the
property to Austin and employers?
According to Centex
Homes, downtown Austin is about 18 miles, 25-30 min. drive. Dell,
Samsung, and Applied Materials are closer, 12-13 miles. The traffic
along Hwy 290 and the southern extension of Parmer Lane is lighter than
I-35, 183, and Mopac. The new State
Highway 130 will be about 10 minutes aways, scheduled for completion
in 2007.
What about schools?
Click
here for info on the Elgin ISD. High School, Middle, and Elementary
are all within about 4-5 miles. Elgin ISD is a developing school
district, like Round Rock and Leander were when those areas were developing.
For this one,
can you tell me the rent, HOA, insurance cost, etc please?
The owner didn't
have the property rented; she still lives there part time. Click
here
and here
to see comparable property rents. Click here
and here
for close by property sales and specific information on this property.
I don't know what the current rents would be, perhaps $950-1150, per comps
above. You need to check with your property manager for that.
I can tell you that we sold two rental homes in this neighborhood, one
on the same street. They took longer to rent than closer-in neighborhoods.
You can see the days on market on the rent comps.
HOA is $300/yr.
Insurance will be approximately $55/mo, give or take, YMMV* Tax rate
is $3.2650.
*your mileage may
vary
I want to know
what documents that I need to prepare...
This evening I just
posted a pretty complete contract package on the downloads at the top of
this page. Fill in the blanks; if you make any changes, initial them.
What is the expected
earnest money for this deal ?
Usually 1% of the
sales price.
When is the expected
close date ?
ASAP, probably 2
weeks.
Who can represent
the buyer for this transaction ? with writing the offer ?
I can assist with
writing the offer. The form is at the top of this page, and it's
almost completely filled out for you.
I represent the seller
and I cannot represent the buyer in this transaction. If you feel it's
necessary to have your own representation, Click
here for representation information. This is pretty close to
a cut & dried situation: due to the strong interest in this property,
it's possible that the buyer will be one who chose not to be represented.
Where can we get
a good financing for this since this is already a resale ?
Contact Cheryl
Darter, 512-634-2106 (click on her name for her website)
Can I add in closing
costs, ceiling fans, and sprinkler system to the sale price and have the
seller pay for them?
Maybe with the closing
costs, but I doubt the owner would pay for upgrades to be reimbursed at
closing. Keep in mind, all other things being equal, the offers that
get accepted are usually the cleanest.
Can I do a 1031
exchange?
That should be fine
as long as the money is there now and this closing is soon.
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