Hi everyone👋, today we are covering another common real-estate term that you’ll come across here in Queens. Whether you are a home buyer or seller, you will likely come across this term. The term we are referencing is a “Binder“ or Sales Agreement.
If you’re looking to buy a property, once you start looking at homes you eventually find a property that you like. At that point, you will probably want to make an offer and that’s when you’ll hear the agent ask you to fill out a binder or sales agreement. In short, a binder or sales agreement is just another word for the offer form. So, the binder or sales agreement is really just a nickname for an offer form. Although the word is Binder, it is actually not a legally binding document here in Queens.
If you’re a Queens home seller, once you have an interested buyer your agent might say “I received an offer and will be sending you the binder with the pre-approval and supporting documents”, something to that effect.
Now, every agents binder will look different, but for the most part each binder or sales agreement will consist of similar items such as buyer names, offer price, terms, conditions, contingencies, etc). Put simply, the binder will typically include most of what an attorney would need in order to draw up a contract.
Some of the items you can expect to see in a binder are:
- Purchaser name(s)
- Purchaser home address
- Offer price
- Cash at contract
- Mortgage amount
- Cash at closing
- Subject to
- Personal property included with sale
- Contract date
- Closing date
A properly filled out binder will pretty much outline all of the details of the purchaser(s) offer.
As a home buyer, keep in mind that you can make your offer more attractive when you fill out a binder. This is where you can be strategic with your offer in order to make it more attractive to the sellers. A good agent will help you be creative in structuring your offer so that it gives you the best chance to win the bid. Even if your offer isn’t the highest one, good terms can sometimes push you over the top.
If you’re a homeowner or seller, then a properly filled out binder will tell you everything about the offer and then you would want to make sure that you and your agent are also requesting all of the supporting documentation (pre-approval, proof of funds, credit scores, etc).
So what is a binder? It is really just a short term or nickname for an offer form. This is the form that you would fill out when you want to make an offer.
Hopefully that answers your question. When you hear this term now at least you’ll know what it means and what agents or other consumers are referring to. If you have any questions regarding binders or how you can make your offers more attractive, feel free to reach out to us anytime 🙂