Buying real estate in and around Bronxville can be a complicated and confusing venture. So many questions... and so few people who know the answers.

If you are looking to purchase in this area, you need a trusted advisor who knows the ins and outs of the market to guide you through. Click here for the answers to these questions... and more!

What does A/O mean and why am I looking at a property that has one?
An Acceptable Offer (used interchangibly in this area with Accepted Offer) means that the seller and a buyer have reached a "meeting of the minds". In other words, they have agreed to a price and to all terms. However, this agreement is NOT BINDING until contracts are signed and the buyers have paid their deposit. Until this happens, the property can continue to be shown as long as potential buyers and their agents have been notified that there is an A/O on the property.

Your agent is showing you the property because, technically, you still have an opportunity to "get" the house. You can decide to outbid the current offer or the current buyers may decide to walk away from the deal.

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I have an Acceptable Offer on a house and have done the inspection, but the seller just took another offer. Can they do that?
Unfortunately, yes. Just like in the question above, until contracts are signed by both the buyer and the seller, anything goes. The seller can take another bid or the buyer can decide to walk away from the deal. Believe me, I understand that this absolutely, positively STINKS, and results in many bad feelings. Unfortunately, that is the nature of the real estate business. I will do my best to help to guide you through these treacherous, and somewhat ridiculous, waters.

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What is a Mortgage Contingency and should I waive it?
First, it is important to understand what a contingency is. A contingency is any provision in a contract that must be met in order to fulfill the obligation of the contract. If a contingency is not met, the buyer may be released from the contract with no financial penalty.

A Mortgage Contingency is a provision in the contract that gives the buyer a certain length of time (usually 30 days) in which to obtain their mortgage commitment. If they are not able to obtain their mortgage commitment for the amount that they need to purchase the property, they can be released from the contract and have all of their deposit money returned.

When a buyer waives the Mortgage Contingency they are, in effect, saying that they will buy the property for the agreed upon price whether or not they receive the mortgage that they need.

Many buyers feel comfortable waiving the contingency because they have been pre-approved by a mortgage lender and feel confident that they will get their mortgage. However, there is one more critical piece to consider before waiving a Mortgage Contingency: if the property does not appraise for the purchase price, the buyer will have to come up with additional funds in order to purchase the property. For example: Let's say the purchase price is $1,000,000 and the buyer is financing 80% ($800,000). If the property appraises at $900,000 the bank will only loan 80% of $900,000 ($720,000). If the buyer has a Mortgage Contingency, then he or she can exercise the Contingency and back out of the contract with no financial penalty. However, if the buyer has waived the Mortgage Contingency, then they are obligated to proceed with the purchase and come up with the extra $80,000. If they can't and have to back out of the contract, the seller has the right to keep the deposit money.

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What are "Comps"
"Comps" is short for Comparable Sales. When buyers find a house that they are interested in, they will sometimes look at these comparable sales - which are houses that have recently sold in the same vicinity, and are similar to the house in question.

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Clearly price is the major component of an offer. What else should be included and can these "term" influence whether a seller accepts my bid?
In order to be complete, an offer must consist of price and the following terms: Amount of financing (ie: the down payment amount), contingencies (mortgage, engineer inspection), and closing date. Although price is important, sometimes sellers will accept less money if the buyers terms are favorable. Terms that are appealing to sellers can be things such as: no mortgage contingency, all cash, a significant down payment, or a flexible closing date. The monetary equivalence of each of these depends on the seller's individual situation.

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I am in "conditional contract" for a house. What is the difference between conditional and unconditional contracts?
A conditional contract has been signed by both buyer and seller, but there are still contingencies (such as the mortgage contingency or, with coops, board approval) that have to be met. Once those contingencies have been met (such as when the buyer receives a mortgage commitment), the contract becomes "Unconditional" which means that the buyer has to proceed with the purchase or lose their 10% deposit.

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What is the difference between down payment and deposit?
A Down Payment is the amount of cash that you plan to put toward the purchase of the property. This is important information for the seller to know because the more cash you put down, the less financing from a mortgage company you will need. Lenders obviously become more stringent on appraisals and loaning money when they have a very high investment in the property (if, for example the buyer is financing 95%, the bank wants to make sure that they will get a solid return for their 95% stake if the property is foreclosed upon). If the lender is only financing 50%, their risk is drastically reduced.

A deposit is customarily 10% of the purchase price which is paid by the buyer when they sign contracts. That money is put into an escrow account until the closing.

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I just saw a house that I LOVE, but it is the first house that I've seen. Should I bid on it without looking at more properties?
Given the current market conditions, I would absolutely say "Yes". We never tend to have a lot of inventory and many people spend months and years waiting for the "perfect house". I am a very patient agent and have spent a lot of time with my buyers to find "the" house. However, my opinion is based on consistently having buyers love the first property they see, decide they need to see more before they buy, and then never finding a home that holds a candle to that first property.

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I've been looking for my dream house for 2 years. Does it even exist?
In this market it can take a long time for the right property, especially within the village. However, no matter how much money you are spending there always seems that some sacrifice has to be made on your "want" list. A good rule of thumb is if a property fits 80% of your criteria, then you have found a house that will become a wonderful home.

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