Often times the home buying process can be overwhelming and important factors can sometimes get overlooked. 3 critical mistakes are often made costing potential home-owner thousands of dollars and years of headaches.
We will take a look at this from the purchaser’s point of view but if you are the home seller, you may want to consider the implications this type of misunderstanding could have on the potential sale of your property.
Often they are very skilled and know much more than an average homeowner. By not choosing or at least talking to a mortgage broker in your area you could be selling yourself short.
If you breach the contract, that is you do not purchase the property, you will probably lose your earnest money deposit and can be sued for damages. You took the seller’s property off of the market, agreeing in writing to buy it “as is”. Now you’re backing out of the deal. They have missed out on other potential buyers and will be starting the marketing process all over again, so the court may award money damages in their favor.
Are mortgages too tough to qualify for? Other would-be investors may simply not be able to qualify for a mortgage. Their income, coupled with a first mortgage, may disqualify them from buying an investment property. Financial institutions are shying away from lending out money as they had only a few short years ago. While this is certainly understandable, it is leaving an unintended situation in that the same financial institutions that are denying mortgages are also the ones that are holding onto foreclosed properties because there aren’t enough qualified or willing buyers.
It is difficult for most people to predict what will happen within the housing industry in the next year or two, and even more challenging given so many unknown variables, such as what will the government do next in its attempts to reform the economy and the way businesses conduct themselves? There is still plenty of chatter among politicians and want-to-be politicians about what to do with the housing market and how to get people out of toxic mortgages and, at the same time, how to get others to begin buying homes again, but until some concrete, workable solutions become apparent, the investors in housing may continue to stay away.
If you are the standard homebuyer and do not wish to commit to this type of contract, the solution is simple. Do not check the AS IS box. Explain to the seller that you understand they do not want to do any repairs to the home and you are more than happy to enter zero dollars ($0.00) into the seller required repairs blank.
But you do want the right to inspect the property and be sure you are fully aware of its condition. Also assure them that you will have the inspection performed quickly and let them know immediately if you find something that would cause you to terminate of the contract.
Paul Amos is an Author living in Sydney, His latest website is about Find property management companies matched to your real estate needs Encuentra los mejores juegos del internet agrupados
|
|