What Should I Do Before Accepting A Contract To Purchase A Home
You have put your home up on the market. You have received an offer here and there, and you are weighing your options. Consider the following points:
1. Price. If you get an offer with your asking price for the home, do not think you underrated your house’s worth. Ask yourself how you arrived at the cost estimates for your home and if you got an independent appraisal. If as well you receive an insultingly low offer, don’t panic. Be objective and realistic. Important questions to consider are how long you’ve been selling the home, how the buyer arrived at their offer and if any other offers are coming in.
2. If there will be earnest money. At times, when you begin negotiating with a buyer, some earnest money, paid by the buyer is held by a third party. If you do not come to any agreement, the earnest money reverts to the purchaser. But if the buyer for some reason defaults your contract, the earnest money may come to you.
3. Inspection and Condition of Home. You should give the buyer an opportunity to have the home inspected to ascertain its structural integrity and state of repair. Ensure the contract spells out the firm that will perform the home inspection and within what set time. If everything is not spelled out in the contract, custom and local law will prevail.
4. Property Title. Prepare to prove to the buyer that you own the home you are selling and that there are no legal claims against it. This is proven through a title search. Also, you must prepare to transfer property ownership through a deed.
5. Financing. Check out what the contract is contingent on. If it is contingent on the buyer’s ability to obtain an acceptable loan, see what all the clauses spell out. Leave the customer almost no escape hatches.
6. Sale of Purchaser’s Home. If you cooperate with a purchaser who must sell their home before they purchase yours, do know that it could translate to you hanging up the for sale sign again for your home. Talk to a realtor with experience in home sales in your area and the buyer’s area for a professional opinion.