One of the tools used in the business of real estate is the use of contracts. However, not many people understand what the contract is all about or the purpose of having one.  There should be no excuse for a seasoned expert or a rank beginner from not knowing or understanding the contract. 

A person who wants to invest in a real estate property should be know the basics of a real estate contract because the basis behind this contract came from the “common law contract principles.”  In most states, real estate agents and lawyers make use of standardized contracts like Counteroffer and Acceptance and Offer. The term offer refers to the contract that is being drafted. Meanwhile, the buyer is the one who usually signs this offer. A “mutual assent” or “meeting of minds” should take place in order for the contract to become effective. Remember that unless the seller formally accepts its terms and conditions, the contract does not bind. Acceptance of the contract happens if the seller already agrees to the terms of the buyer. Counteroffer takes place when a seller negotiates with the buyer. But if the seller does not accept the offer during the given time frame and manner that the buyer set, no contract happened at all. For instance, the contract says that the acceptance must be made through facsimile, the acceptance made through telephone call or mail is still unacceptable. 

There are two kinds of real estate contracts- bi-lateral contract and unilateral contract. When you speak of bi-lateral agreement, it means that there is a consensus between the buyer and the seller since the seller agrees that he or she will sell his or her property while the buyer assures the seller that he or she will buy the property. The second type which is the unilateral contract means the seller has given the obligation to sell while the buyer has an option of buying the property or not. 

Any prospective buyer should know the basic and legal requirements that should be present in order to consider the contract as a valid one.  

The first requirement is that there should be a mutual agreement that took place. Second, the purchase and sale of the real estate contract should be in a writing form for it to be considered as enforceable. Otherwise, if the agreement only happens in a verbally and one of the parties (buyer and seller) decides not to push through with the deal, either the buyer or the seller will be unlucky of the deal. Third, the contract should identify who are the parties involved in the deal. Even if the law does not require it, the full names and even the middle initials should be present in the contract; if one party is a corporation, the name of the company should also appear in the contract. Third requirement is that, the specific property should be identified, otherwise if the description of the property is vague, there is no binding contract. The contract should also include the property’s purchase price and a consideration which comes in the form of a benefit, value, or interest that includes promise. Lastly, for the contract to be enforceable, the parties should have their signatures present on it. The signature of a witness or notary is not required but if there is a facsimile signature, it will only be acceptable if the contract says that the facsimile signatures that appear are valid.

As a buyer, what time of the year can you get the most of your money in buying homes?

A question home buyers continue to wrestle with is: when is the best time to buy a home? There are so many days in the year but did you know that there are moments when homes can be bought for low prices? There are actually two. Want to give a guess at the two days that can answer the said question, when is the best time to buy a home?

During spring time, the time when colorful, attractive flowers begin blooming after a long winters’ season along with that the real estate signs are also carefully being put up by many home sellers. Real estate agents and buyers come out of their hiding places and resume in playing their part for the spring sales season.

During the spring season, offers for homes literally fly over the FAX machines and mobile phones ceaselessly ring in real estate offices as home buyers and sellers coordinate with real estate agents in obtaining their needs and wants in the real estate business. In this particular season, there are more homes for sale on the market than there are in any other time of the year! The gloomy side of this is that this is the worst time to purchase a home. Prices for homes are high and there is too much competition of home sellers’ prices for homes on the real estate market. The happy side of this is that one day out of the days of this season has been identified to be a good day to get a good deal on home buying…Easter Sunday.

So when is the best time to buy a home during the spring season? Yes, during Easter Sunday.

Many things happen during Easter Sunday when in comes to buying homes. Consider the case of a home buyer who is in search of a fixer in the suburbs of Sacramento who was lucky enough to encounter a home offered out in the real estate market that came along with an ‘attractive’ price. He was able to seal the deal so quickly that when other offers came on the next day, Monday, it was already too late.

Again, when is the best time to buy a home after Easter Sunday?

The answer to that is on Christmas day, December 25. Everyone is so busy with celebrating the sacred day with their loved ones that they would have forgotten or are too uninterested to look around for a home to buy. Knowing that, home buying on Christmas day is a clever move. Nobody but you or only a few others are looking around for a home to buy so the best deals are up and untaken as of yet. You can quickly seal the deal with the sellers on that day!

So when is the best time to buy a home? During Easter Sunday and Christmas Day, of course! Just go out and look for an agent who is willing to work his or her best during those days. They are out there!