pre-fill a contract when meeting a seller? - Posted by John

Posted by John on October 18, 2002 at 10:16:23:


pre-fill a contract when meeting a seller? - Posted by John

Posted by John on October 17, 2002 at 14:14:14:


I had my first close-call yesterday. I have my first of three phases of my marketing strategies in place, and I got a call from a motivated seller. I spoke with him and found out he had a loss of job situation and needed to move within 30 days. I think I lost the deal because I balked and didn’t recognize the sweetheart of a deal that it looks to be and didn’t set up an appointment with him on the first call. Well, he hasn’t called back after two messages… oh well… more deals will come. BUT I realized in trying to mentally prepare myself to meet him, I am clueless on how to fill out a contract! I wanted to fill in as many ‘routine’ blanks as I could to reduce the time sitting there filling it out (is this a smart idea? will they get cold feel filling out the blanks?). By the way, this is a Texas contract.

  1. I am wanting to buy low and wholesale, I know to put ‘and/or assigns’ in my name and the legal desc. and all that. I am approaching the seller as an all cash quick close buyer, should I put the entire offer price in the ‘cash portion of sales price payable by buyer at closing’, or should I utilize the financing section as a way out? I.E. “contingient upon buyer obtaining acceptable financing”. One thing I’m scared of is getting a contract on a house, but no one there to assign it to and I’m stuck with no way out of the contract.

  2. What is a good amount of earnest money to typically put up (I know there is no right answer, just what has worked in most people’s experience)? My contract gives blanks for an amount for buyer to deposit at execution of contract, and a blank for additional earnest money do be deposited on or before and a blank for a date. How should I handle this? Put all earnest money on the first blank and have it at execution?

  3. Do most people have the seller pay title policy and survey?

  4. How do I handle the seller’s disclosure notice? Do I print out a copy for them to give back to me later?

  5. How far out should I try to schedule closing on my first few deals (until I am comfortable with the process)?

  6. What amount do most people put for termination option fee? Should I pay this to seller on the spot by check? How else might I handle this fee? What length of time should I negotiate for on the length of time of the termination option period? Is it prudent to make the termination option period and closing date the same (I am a skittish newbie with an itchy trigger finger and want as much lattitude out and will get out on the first hint of a problem… at least on my first few deals)?

I apologize in advance for so many detailed questions. I usually attempt to search the archives first before asking questions here, but I couln’t find the info I need (or I just couldn’t think of the right search phrase to use).

Thanks for everyone’s help!