Pocono Home Purchase Process | PA Home Purchase Summary

The PA Home Purchase Process...

Making a real estate purchase in PA begins with submitting a written offer on a purchase document (an agreement form) supported by a good faith deposit. Also, the buyer should expect to submit a financing pre-approval letter or, for a cash purchase, a proof of funds letter with the offer. The agreement should contain contingencies to protect the buyer... required financing and a satisfactory inspection among others.
At that point the seller can either accept, reject, or counter the offer verbally. If rejected or countered, the buyer can verbally respond. If buyer and seller reach a verbal understanding, then the original offer is either amended or re-written to conform with that understanding. If the original offer is not acceptable and cannot be negotiated verbally by both parties, the deposit is returned to the buyer. It should be noted that buyer and seller are not committed nor obligated to perform until both parties have signed a written agreement.
Foreclosure Properties: In the case of the seller owning the property as a result of foreclosure or a deed in lieu of foreclosure, verbal agreement is followed by an amending document substantially overwriting the original agreement with price, terms, and conditions consistent with the seller's requirements throughout the state. In PA, the 2% transfer taxes are paid fully by the buyer instead of being split between buyer and seller as is the custom with non-foreclosure properties. And, there may be other closing cost amounts required to be paid by the buyer. Buyers should base their initial offers on these additional closing costs. Generally, the terms and conditions on foreclosure properties are substantially changed from the original agreement.
Short Sales: A property is deemed a short sale when the purchase price is below the seller's combined current debt(s) and closing costs necessary to effect the sale. The seller's creditors must resolve the distribution of the funds between them. When there is more than one creditor, the process can take more time. It is important the buyer be aware of the current regulations regarding the short sale process.
Real Estate purchases in PA are subject to PA law. The buyer should work through a lender office in PA where they are familiar with PA real estate customs and practice. The attorney and home inspector should also be licensed to practice in PA. I cannot emphasize this more... PA professionals for PA purchases!

This information is provided as a summary of the process and not as legal or financial advice. Kindly discuss any proposed purchase of real estate with an attorney and/or accountant licensed to practice in PA.

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