A lot of home buyers, especially first-time home buyers, tend to be nervous about making the big decision to actually place an offer on a home. I can understand why.  It’s a big decision to make and it may mean a pretty large outlay of money (although, not always). Still, once someone puts their offer on paper there’s a possibility that the Seller will say, “Yes!” and sign the offer making it a legally binding contract.

What then?

  • is it the right house?
  • in the right neighborhood?
  • with the right amenities?
  • with the best mortgage with the best rate?
A lot of people start having second thoughts or cold feet or buyer’s remorse. Whatever you want to call it they are second guessing their own decision.

The Offer Isn’t The End…It’s The Beginning

Actually looking at houses and visiting the neighborhoods is the easy part.  It negotiating the terms of the offer so that both the home buyer and the home seller are on the same page that requires some skill and patience.

  • the price needs to be agreed upon?
  • the date of settlement?
  • is the financing agreeable to the seller?
  • is the earnest money deposit large enough?

Even after you get through all that and every one is in agreement, there are still ways the contract can be voided.  I call them the “Get Out of Jail, Free” cards. In the real estate world, they’re called contingencies.

What Are Some of the Contingencies?

There are really some common contingencies that I find in the vast majority of all contracts:

  • the financing contingency – if, for some reason, your financing cannot be fully approved, you can get out
  • the home inspection contingency – the home buyer does a home inspection and any number of other inspections which might include radon, mold, lead based paint, well and septic systems, wood destroying insects and more. If the inspection uncovers something egregious or if the Seller and Buyer can’t negotiate a happy solution to resolve the inspection items, you can get out
  • home owner association documents – the home buyer has five days to review these once they have their hands on them. If they want out, they get out. They don’t even need to state a reason.
There are lots of others, too:
  • the buyer needs to sell their existing home to be able to make the purchase on the new home
  • the seller needs to find a home to move into before they can sell their existing home
  • a third party, like a bank, may need to approve the sale (in the case of short sales)

The bottom line is that writing and submitting the initial offer is not totally irrevocable. Ask any Realtor. Tons of transactions have fallen apart due to one or more of these contingencies.

The reason I bring it up at all is that it’s important to take that very first step once you find the house you want to live in: write the offer.

A good Realtor will make sure they have your back and that, if something comes up during the process that shouts, “Get out!”, you’ll be able to get out. Of course, it’s really preferable to want the house you put the offer on.

 

Don’t try to get out! It’s time to get in…to a home you really love.
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