Offer was accepted, now what?

14 Replies

A duplex that I put an offer out of state (Ohio), was accepted.

I was reading a few posts before I posted this to get a brief idea on what to do next.

I'm on mobile so formatting is going to be terrible, I'll do my best.

1) get current lease agreements. I learned I should've done this before making the offer.

2) get all the expenses on the property.

3) get security deposits and prorated rents

.....

And yea, no idea what to do next.

Can't wait to read the responses!

Your agent should have all that under control, no?

Get inspection done in the property, make sure it’s not a run down. And if it is get an idea what it will call you to fix it. Where in Ohio? It might have a POS on it. 

@Alex S.

There was an inspection in November 18 but I'm getting another one. Getting a plumbing on the mainline as well.

It's not "run down" but does need some work for sure.

I plan on managing the property myself.

The zip is 44111 Cleveland.

Ah, ok. Makes sense. Yes, next steps would be depositing earnest money if you haven’t and getting the home inspection 

Your agent should write at addendum stating all deposits leases etc should be turned over to you within 5 or 7 days etc etc 

Shop for title company and verify the fees. Sometimes you can get steered towards a specific title company. The area is not bad over all if it’s a duplex you should be able to get about $650 per unit. Find out if the tenants or a month to month lease or on annual. 

@Victor Sarkisyan . I owned in that zip code. Remember the landlord pays for water and sewer and to account for that accordingly in your numbers

@Alex S.

It's currently occupied on both sides, enough to cover all expenses so I'm happy about that.

I accounted for very conservative numbers. The property does have work that needs to be done on the outside which I wasn't too thrilled about but 10 years from now I won't care.

@Caleb Heimsoth

Owned? I assume you sold?

And yes, I've accounted for the water and sewer, my agent gave me data on it. He said $50, I put $100 on my calc

Originally posted by @Victor Sarkisyan :

@Caleb Heimsoth

Owned? I assume you sold?

And yes, I've accounted for the water and sewer, my agent gave me data on it. He said $50, I put $100 on my calc

Yeah I sold.  On average it was 80 a month total.  For you I’d expect 100-200 total per month 

Here is the process that typically unfolds in the transactions I am involved in once the offer has been accepted.

  • Contract becomes fully executed (both sides sign)
  • Send fully executed contract to the lender and lawyer so they can start to do their thing
  • schedule the home inspection
  • Coordinate getting the earnest money deposit to the sellers brokerage within 48 hours of fully executed contract
  • Request any lease docs and income/expense docs from the sellers
  • Have the inspection on the property and once completed and reviewed negotiate any repair and or credit requests with the sellers
  • Clear up any quesitons stemming from the lease docs seller provided
  • Buyer works with lender in order to submit docs, schedule appraisal, and work towards receiving loan commitment letter by the date outlined on the contract.
  • Once commitment is received, tie up any loose ends and wait for the clear to close from the lender.
  • Once clear to close is received and closing date is coordinated from the lawyer, schedule the final walk through with the sellers
  • At the walkthrough confirm that nothing major with the home has changed since the inspection and confirm any agreed upon repairs were completed in accordance with the receipts you should have already received from the sellers confirming repairs were done by licensed pros where needed.
  • During all of this work with the lawyers to make sure they are getting in writing from the sellers that everything outlined in the lease is actually happening. Tenants are current on rent, security deposits amounts being transferred, who is responsible for utils, etc....Just tell your lawyer you want assignment of lease docs and/or estoppel agreements completed. They should be familiar.
  • Closing day - sign all relevant docs and make sure you get any keys and/or money due to you from the seller on the day of closing. No loose ends.

This list could change a little bit depending on the type of transaction or things being done differently in the local market, but it should be so combination of these steps. Your agent should know these steps cold if they have any experience at all.

@Michael Noto thank you so much for taking the time to write all that! Even though my agent should know these steps, I want to be informed as well, so thank you!

I need to find a local lawyer in Ohio, or see if my agent is going to provide one (most likely but I'll still do my due diligence).

Check your contract schedule. Stick to it.


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