Slide 1 of 21
Real Estate Contracts:
Making an Offer
Redfin North Side Team
April 9th 2014
Host: Carrie Georgitsis
Follow:...
Slide 2 of 21
A Little Bit About Who We Are
Redfin is a real estate brokerage that has
helped over 20,000 people buy or se...
Slide 3 of 21
ASSOCIATE AGENT
Takes you to see homes
See 50+ homes a week
YOU
AGENT
Responsible for your success
Writes yo...
Slide 4 of 21
Offer Basics
 Must be in writing to be binding
 Specify both price and terms
 Describes the duties and ob...
Slide 5 of 21
What Forms Will We Use?
 Chicago Association of Realtors
 Illinois Association of Realtors
 Exceptions:
...
Slide 6 of 21
Most Commonly Used Forms
 Multi Board 5.0
 CAR Condo Contract
 Real Property Disclosure
 Lead Paint Disc...
Slide 7 of 21
Multi Board 5.0
•Make sure your name is how you want it on deed
•You can input PIN number at County Treasure...
Slide 8 of 21
Fixtures and Property
•Pay attention to and make note of fixtures as you view the property
•Can’t include ap...
Slide 9 of 21
Offer Price and Earnest Money
•First offer price can be up to 15% off list price
•If multiple offers you sho...
Slide 10 of 21
Closing Date and Disclosures
•Choose your ideal closing date.
•Typically 30-45-60 days out
•Seller may coun...
Slide 11 of 21
Taxes and HOA fees
•Taxes are prorated to the day of sale
•Seller will give you credit at closing since we ...
Slide 12 of 21
Attorney Review Contingency
•Within 5 business days after contract is fully executed and delivered
•Hire an...
Slide 13 of 21
Inspection Contingency
•Hire a licensed inspector $300-$600
•Need inspection and report done within 5 busin...
Slide 14 of 21
Mortgage Contingency
•Terms of the mortgage you would like to get
•Actual terms can be different
•This is a...
Slide 15 of 21
Additional Clauses
Slide 16 of 21
As-Is Clause
•You always have the right to ask for repairs
•Seller always has the right to say no
•When as-...
Slide 17 of 21
Signature Page
•Not a done deal until both parties have signed and initial earnest
money is submitted
•Send...
Slide 18 of 21
Redfin Buyer’s Agreement
Slide 19 of 21
Redfin Buyer’s Agreement
•Redfin refund based on list price, not negotiated sales price
•Enter property add...
Slide 20 of 21
Redfin Buyer’s Agreement
Slide 21 of 21
CAR Condo Contract
Slide 22 of 21
Real Property Disclosure
Slide 23 of 21
Real Property Disclosure
Slide 24 of 21
Lead Pamphlet
Slide 25 of 21
Lead Paint Disclosure
Slide 26 of 21
Lead Paint Disclosure
Slide 27 of 21
Radon Pamphlet
Slide 28 of 21
Radon Disclosure
Slide 29 of 21
Radon Disclosure
Slide 30 of 21
Rider 5 Interest Bearing account
Slide 31 of 21
Rider 5 Interest Bearing Account
Slide 32 of 21
Short Sale Rider 20B
Slide 33 of 21
Short Sale Rider 20B
Slide 34 of 21
When the documents are
complete?
 Sign – typically via DocuSign
 Submit – with your pre-approval letter
...
Slide 35 of 21
Questions?
Carrie Georgitsis
(773) 633-3996
carrie.georgitsis@redfin.com
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Redfin Contract Class - Chicago, IL

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Redfin Contract Class - Chicago, IL

  1. 1. Slide 1 of 21 Real Estate Contracts: Making an Offer Redfin North Side Team April 9th 2014 Host: Carrie Georgitsis Follow: @Redfin Like: http://www.facebook.com/Redfin
  2. 2. Slide 2 of 21 A Little Bit About Who We Are Redfin is a real estate brokerage that has helped over 20,000 people buy or sell a home; 97% would refer us to a friend.  Customers, not commissions  Informed decisions  The right home for the right price  No obligation  Get back up to 50% of our commission
  3. 3. Slide 3 of 21 ASSOCIATE AGENT Takes you to see homes See 50+ homes a week YOU AGENT Responsible for your success Writes your offer Handles negotiations COORDINATOR Schedules tours Prepares paperwork Works with escrow How Our Team Works
  4. 4. Slide 4 of 21 Offer Basics  Must be in writing to be binding  Specify both price and terms  Describes the duties and obligations, including timelines  What happens if _________?  Any change constitutes a “counter”
  5. 5. Slide 5 of 21 What Forms Will We Use?  Chicago Association of Realtors  Illinois Association of Realtors  Exceptions:  Builder Purchase Agreement/Addendum  Relocation Company Addendum  Bank Addendum  Short Sale Addendum
  6. 6. Slide 6 of 21 Most Commonly Used Forms  Multi Board 5.0  CAR Condo Contract  Real Property Disclosure  Lead Paint Disclosure  Radon Disclosure  Rider 5 Interest Bearing Account  Short sale Rider 20B
  7. 7. Slide 7 of 21 Multi Board 5.0 •Make sure your name is how you want it on deed •You can input PIN number at County Treasurer’s Website to get current tax info
  8. 8. Slide 8 of 21 Fixtures and Property •Pay attention to and make note of fixtures as you view the property •Can’t include appliances on bank owned sales •Home Warranties, approximate cost $500
  9. 9. Slide 9 of 21 Offer Price and Earnest Money •First offer price can be up to 15% off list price •If multiple offers you should offer your highest and best price and terms •Initial earnest money $1,000 •Total earnest money 3-5% of purchase price •Earnest money gets applied to your down payment •Earnest money refundable under contingency clauses •On bank owned properties offer total earnest money up front
  10. 10. Slide 10 of 21 Closing Date and Disclosures •Choose your ideal closing date. •Typically 30-45-60 days out •Seller may counter with their ideal date •You are only acknowledging receipt of disclosures, not agreement
  11. 11. Slide 11 of 21 Taxes and HOA fees •Taxes are prorated to the day of sale •Seller will give you credit at closing since we pay taxes a year behind •Sometimes we can get a 10% cushion in case taxes go up
  12. 12. Slide 12 of 21 Attorney Review Contingency •Within 5 business days after contract is fully executed and delivered •Hire an attorney to review contract, negotiate inspection issues, review title, prepare closing paperwork, attend closing •Typical cost $500-$600 •Attorney Review and Inspection run concurrently
  13. 13. Slide 13 of 21 Inspection Contingency •Hire a licensed inspector $300-$600 •Need inspection and report done within 5 business days after executed contract •Ask seller to repair major defects
  14. 14. Slide 14 of 21 Mortgage Contingency •Terms of the mortgage you would like to get •Actual terms can be different •This is a way out clause in the event rates increase, job loss, etc
  15. 15. Slide 15 of 21 Additional Clauses
  16. 16. Slide 16 of 21 As-Is Clause •You always have the right to ask for repairs •Seller always has the right to say no •When as-is you still have an inspection •All other rights are preserved •Property should be conveyed in condition it was in when you inspected it •Always have a final walk through
  17. 17. Slide 17 of 21 Signature Page •Not a done deal until both parties have signed and initial earnest money is submitted •Send this contract to your attorney and your lender
  18. 18. Slide 18 of 21 Redfin Buyer’s Agreement
  19. 19. Slide 19 of 21 Redfin Buyer’s Agreement •Redfin refund based on list price, not negotiated sales price •Enter property address on Redfin site or use refund calculator to determine amount of refund
  20. 20. Slide 20 of 21 Redfin Buyer’s Agreement
  21. 21. Slide 21 of 21 CAR Condo Contract
  22. 22. Slide 22 of 21 Real Property Disclosure
  23. 23. Slide 23 of 21 Real Property Disclosure
  24. 24. Slide 24 of 21 Lead Pamphlet
  25. 25. Slide 25 of 21 Lead Paint Disclosure
  26. 26. Slide 26 of 21 Lead Paint Disclosure
  27. 27. Slide 27 of 21 Radon Pamphlet
  28. 28. Slide 28 of 21 Radon Disclosure
  29. 29. Slide 29 of 21 Radon Disclosure
  30. 30. Slide 30 of 21 Rider 5 Interest Bearing account
  31. 31. Slide 31 of 21 Rider 5 Interest Bearing Account
  32. 32. Slide 32 of 21 Short Sale Rider 20B
  33. 33. Slide 33 of 21 Short Sale Rider 20B
  34. 34. Slide 34 of 21 When the documents are complete?  Sign – typically via DocuSign  Submit – with your pre-approval letter  Wait for a response  Counter – if necessary  Acceptance – when signed by all parties and earnest money is submitted  Next steps – your Agent and Attorney will guide you through the rest of the way
  35. 35. Slide 35 of 21 Questions? Carrie Georgitsis (773) 633-3996 carrie.georgitsis@redfin.com

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