What about the appraisal?
Most buyers become really concerned about whether the home they are buying will appraise or not. There’s no reason to worry. If you’ve gotten to the point where you are putting an offer in, your realtor should have checked the comps by now and he/she should have a really good idea whether the offer you’re putting will appraise. Besides, in a standard Louisiana contract to purchase there is an appraisal clause that allows the option that the seller either can drop the price to reflect the appraisal value or you have the right to walk with no consequences.
What about hidden defects and the overall condition?
Before entering into the listing agreement the seller fills out a property condition disclosure of everything that he/she knows to be wrong with the home. That doesn’t mean there isn’t a problem he/she might not know of. That is why I and any other good Realtor will highly recommend a licensed home inspector. As with the appraisal clause there is also an inspection clause in the offer. It gives you a negotiable amount of time to inspect. Fifteen days is plenty of time for most cases. The clause allows the buyer a negotiated time frame to back out called due diligence. During the buyers due diligence he/she can have whomever they want including but not limited to themselves to inspect the home. If there are items that need to be fixed that the buyer’s Realtor can present to the seller a buyers response to the home inspection. This allows for multiple options. The seller can reduce the price or fix said issues or the buyer can simply walk away with no consequences.
What about leans and judgments?
Let me be very clear “I am by no means an Attorney.” That being said the purchase agreement will protect you in the event the property you are buying has a lean or a judgment. If an Attorney finds one or the other, the date of the closing will be extended as per the negotiations of the purchase agreement. Typically a 30 day extension of the closing date to allow the Attorney time to clear the title is given. If the title issues are unable to be resolved the buyer is allowed to walk away with no consequences.
I want to buy but What about my home I’m living in?
Every home owner I’ve ever spoken to said there home will sell fast! It didn’t matter how bad the market was or how horrible the condition or how overpriced, they all said the same thing. I say that we should have no problem putting it on the market then. I once worked with a relative who wanted to buy and told me they were going to use cash. After 6 months of looking we found “THE ONE.” Of course I was ready to put the offer but she said I have to sell my house first. HELLO! Don’t worry it won’t take long she said. Before we could get the listing agreement together the sellers of the home she fell in love with accepted an offer. If your first mortgage is paid off or you are preapproved with both and you want to buy then buy. For all of us other people we will need to put our home on the market first. You may say that you will wait to find something but that will NEVER work out in your favor and you will just get your hopes up. You may be thinking, “Where will I live if someone buys my home?” That’s a great question. When someone puts an offer on your home you can do multiple things. One option would be to take their offer with the contingency that you find a home to buy before you all close on yours. That will lock your offer in and give you a place to stay while you narrow it down. Another option is, to stay with a relative or friend for a short time. (Yeah I’d chose the first one too) lol.
If you have any more “what about” questions, you can leave me a comment or give me a call and I’d be happy to help.