Should Real Estate Buyers Beware?
August 21st, 2008 categories: Real Estate Buying, Real Estate News
Buyer beware!
Familiar phrase? Well it should be and not because the real estate you are purchasing has hidden problems…but because the purchase contract you didn’t read may come back to haunt you.
Many real estate buyers are caught in last minute battles over the costs for owner’s title insurance, home warranties, repairs and closing costs because they didn’t take the time to thoroughly review the entire purchase contract.
Most, but not all, real estate companies in our area use the Cincinnati Area Board of Realtors version of the purchase contract. Your agent will walk you through the contract-paragraph by paragraph- as you make an offer on a property. However some buyers are so exhausted from running through homes, they do not really concentrate on the details of the purchase contract.
Buyers -be aware of the following:
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Purchase Price (pretty obvious)
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Type of Financing
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Ernest Money -the process that is followed to obtain the money -if the deal falls apart.
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Dates -inspection and financing time frames. Failure to stay within contract dates may cause problems
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Receipts for repairs
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Home Warranty – who is going to pay for it?
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Owner’s Title Insurance (yes you want an owner’s policy)-are you or the seller going to cover the cost?
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Closing Costs- if you negotiated a dollar amount toward closing costs and or points- is the proper figure reflected on closing statement?
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Closing date and occupancy date/time (not always the same date).
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Finally-if you think the yard set and fridge are included (and anything else not nailed to the walls) make sure you list the items on the contract. Don’t assume.
A little extra time on the purchase offer contract can eliminate a lot of problems and reduce stress.
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