Home ownership is one of the most exciting moments in life. It has numerous benefits, including appreciation and tax deductions. However, it also has its risks. For this reason, you should research adequately before investing in a home.
After being informed, finding your dream home and being ready to place an offer, the seller will give you a contract to close the deal. The following are three factors to look out for to avoid agreements that may disadvantage you.
If you can’t pay all cash upfront for a home, you may need to use a mortgage. The seller will have a clause in their contract detailing their financing terms. And one of the matters is who gets the earnest money if you don’t purchase the home. Ensure that you can meet the seller’s financing terms because they may keep your earnest money if your loan falls through.
Nonetheless, a contract with a financing contingency plan can protect your deposit if you don’t obtain funding.
You want to buy a home that is in good condition. A purchase agreement should allow you to hire an inspector to check if the house has defects. The seller should be willing to repair any issues discovered. But if they fail to do so or the issue is major, the contract should permit you to withdraw your offer without penalties.
Paying closing costs
Who will pay certain costs if you close the deal? This should be answered in the contract. Your real estate agent will inform you about who pays what in your chosen location and if you can request the seller to pay some closing costs.
Real estate contracts can expose a buyer to several challenges. If you are in dispute with a seller due to a contract you signed, consider your options to make the rights calls.