Any wealth coach would say that owning real estate should be an asset in everybody’s portfolio and the good news is if you are currently visiting Puerto Peñasco you are located in the Mecca of real estate investment so this article will discuss the process of submitting a real estate purchase offer.
First and foremost, you will want to work with an AMPI-Affiliated Real Estate Advisor who is licensed in the Mexican state of Sonora to facilitate real estate financial transactions on behalf of consumers. AMPI or the Asociacion Mexicana de Profesionales Inmobiliarios, is the Mexican Association of real estate professionals which guides its agent members to a proper code of conduct and ethics that dignify the real estate market and protect private property rights, this according to their website. Always ask if an agent is an AMPI-affiliated agent.
Real Estate Purchase Offer
If you want to make an offer your AMPI-Affiliated Real Estate Advisor will download and open a real estate purchase offer agreement. This agreement is used and accessed by all AMPI agents, so the process is uniform and cohesive. Some important components of the Real Estate Purchase Offer are the date of offer, buyer and seller’s names, purchase price, earnest money deposit amount, amount of balance due at closing and a closing date. Other information includes naming an escrow company, closing coordinator and any special contingencies. If you are purchasing a property governed by an HOA or if you are using owner-financing to purchase, then separate addendums pertaining to each will be attached to the purchase offer.
Once a purchase contract is signed an escrow deposit is made by the buyer typically within five business days of signing. The amount of escrow can start at $5,000 and can go up or down it just depends on what is agreed to and accepted. All earnest monies remain refundable to the buyer until all contingencies are met. In the event of a dispute between a buyer and seller over money the escrow company will release money pursuant to the terms and conditions of the purchase contract.
A buyer is advised to have a survey done at the property to understand the boundaries of a property and most importantly to make sure a neighbor is not infringing on your land. If a buyer elects to have a survey, then the escrow deposit will remain refundable until buyer approves the results of the survey. In return, the seller will expect the buyer to have the survey completed and approved within five business days. Once approved, that contingency is removed.
Special Terms, Conditions & Contingencies
Any special contingency agreed to by the buyer and seller will keep escrow money refundable until all contingencies are met. Once all contingencies are met then the escrow deposit becomes non-refundable, and the sale will move to Pending. Some examples of special contingencies are that buyer and seller must approve closing costs within 72 hours of receipt. This is a common example and a great protection for both parties involved that allows them an exit if closing costs come in too high. Closing costs can range from 4% to 6% of the purchase price.
The purpose of the article was to show that there are processes and protections in place to make your buying experience here in Puerto Peñasco a pleasurable and secure one. If you have any further questions, feel free to reach out to me by email.
About the author: Joseph Sanchez is president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and engineered renovations and a real estate agent with RE/MAX Legacy specializing in the sale of new home developments. He resides here in Puerto Peñasco with his wife and three children and is originally from Chicago. For more information email him at email@example.com