Information for Buyers

Buying a home is the one of the most important purchases in our lives. It is important that your interests are well represented and that your needs are met. At Jebb & Driggin Realty, Inc. your Exclusive Buyer’s Agent will work with your lender, inspectors, and attorneys to ensure a successful outcome.

The following is a brief overview of the home buying process.

Lender Pre-Approval

Before visiting properties, it is important to speak with a lender concerning your prospective mortgage. The lender will speak to you about your overall financial credentials and issue a conditional letter that confirms what mortgage amount you qualify for. This information is very helpful in determining what sale price you can afford; and when the letter accompanies the offer, it makes the offer more attractive to the Seller.

The Offer

In Maine an offer is made by the submission of a Purchase and Sale Agreement, a binding document that contains all the basic elements of the transaction including price, contingencies on which the offer is based (property inspection, financing, pests, lead paint, etc), as well as standard legal language suggested by the state real estate commission. A deposit check accompanies the offer. The check is deposited in the Listing Broker’s escrow account and is fully refundable if the Purchase and Sale Agreement is not accepted or if any of the conditions in the offer are not met. The deposit amount is generally 5% of the purchase price, but the Buyer can propose a lower number and your Jebb & Driggin Buyer’s Agent will generally recommend that payment of most of the deposit (all but perhaps $1,000) be delayed until after completion of the due diligence process discussed immediately below.

This Purchase and Sale Agreement allows the Buyer some time (normally 10 to 15 days) to perform due diligence without the concern of the Seller accepting an offer from another prospective Buyer.

The due diligence process includes the following items:

• Property inspection by a duly licensed inspector (cost of which is borne by the Buyer).
• If a condominium, a satisfactory review of all condominium documents and budgets. It is generally a good idea to hire an Attorney familiar with condominium bylaws to assist in this review.

Closing

The purchase of the home is complete when all pertinent documents are executed and the deed is filed at the registry of deeds.