Ned Mahoney's Blog
You have finally found what you believe to be the perfect home. Then, something rings off in your gut. Maybe it was poor communication with the seller. Maybe a big change happened in your own life in a short period of time. All you know is that you really want to back out of the deal. You might have a lot of questions. Is this possible? Are there consequences?
The short answers to these questions are yes, and yes. There is a possibility that you could be sued by your backing out of a deal. It’s rare that buyers are actually mandated to buy a home that they don’t actually want to buy. Sellers will, however, be able to keep any money that has already been paid as a deposit after a certain point in the dealings on a home sale. Sellers may also be awarded damages in some cases.
Legally Backing Out Of The Contract
There are a few circumstances where buyers may have a legitimate right to back out of a contract on a home. If certain contingencies weren’t met, as a buyer, you’re free and clear to walk away. These circumstances include:
- Financing falls through
- You couldn’t sell your former home
- Flaws in the home have not been disclosed
- Property boundary line issues exist
- Liens are against a home’s title
- The seller does not meet the terms for improvement
- Undisclosed uses exist for the land such as a pathway
If none of these reasons apply to you and you still have reservations about buying the home, you may need to sacrifice a huge chunk of money. The way that you exit the deal will all depend upon the contracts that were signed previously.
Other Buyers Are Waiting For The Home
If you are in a tight market and decide to back out of buying a home, you could be in luck. Often, if there’s a backup offer, it’s enough to satisfy a seller that at least the home will be sold promptly. However, don’t hold you breath when it comes to getting your deposits back. If you have already “promised” to buy a home, you can kiss the deposit goodbye, unfortunately.
Always Hire A Real Estate Attorney
Whether your state requires it or not, you should always hire a real estate attorney. These professionals can help you to read each and every line of the contracts that you’re signing when buying a home. They will make suggestions as to how you can protect yourself through the process along the way. It’s a good investment to hire a lawyer when you’re buying a home.
With 24 hours before you finalize your home purchase, you might feel a mix of anxiety and excitement.
What will it be like to finally own a home? How will the home closing process go? And what will I need to do to ensure everything goes seamlessly as you wrap up your home purchase? These are just some of the common questions that homebuyers consider in the hours leading up to a home closing.
It is important to prepare as much as possible before you complete a home purchase. Lucky for you, we're here to help you do just that.
Let's take a look at three tips that you can use to get ready to finish a home purchase.
1. Get Your Paperwork in Order
You may need multiple forms of identification and other essential documents when you close on a home. Thus, you should put together a folder of any must-have documents at least a day in advance.
If you find that documents are missing, retrieve them as quickly as possible. Also, try to get multiple copies of important documents if you can.
When it comes to getting ready for a home closing, it usually is better to over-prepare. Therefore, if you plan ahead as much as you can, you'll have all of the documents you need to complete the home closing process without delay.
2. Finish Any Last-Minute Packing
After you finalize a home purchase, you'll be ready to move in to your new home. As such, you should ensure that all of your belongings are packed up and ready to go.
If you're vacating an apartment, ensure that you've notified your landlord and provided sufficient notice about your upcoming move. That way, you'll be able to finish your rental agreement on good terms with your landlord.
Also, if you need extra help for your move, be sure to reach out to a moving company or family members and friends. And if you require a moving truck, don't forget to rent one in the days leading up to your move.
3. Consult with Your Real Estate Agent
The day before a home closing can be stressful, particularly for first-time homebuyers. If you have any concerns about the home closing process, be sure to consult with your real estate agent.
Your real estate agent likely has been a life-saver throughout the homebuying process thus far and will continue to assist you in any way possible. If you have questions about the home closing cycle, your real estate agent will respond to your queries immediately.
In addition, your real estate agent can teach you the ins and outs about what will happen before, during and after a home closing. He or she will explain what to look for during a final home walk-through, what home closing forms that you'll need to sign and what to expect after a home purchase.
Streamline the home closing process – use these tips, and you can get take the guesswork out of finalizing a home purchase.
If you’re in the market to buy a home, you want to find the perfect place for you and your family. In a seller’s market, the competition can be fierce. As a buyer, you may be under the impression that you need to make the highest offer in order to secure the home of your dreams. The problem is, you may never know what price other people have offered for the same home.
Know Your Budget
First, you should know what kind of a budget you have to work with to buy a home. You probably have done an online search to see what’s out there and what price range the homes you like fall into. You’ll want to go beyond the online search and actually see some of your favorite houses in person because pictures can be deceiving.
Next, you’ll want to do is speak with a lender. This can help you before you even hit the ground running on your home search. A lender can pre-qualify you then work you through the process of pre-approval. This will give you a definitive number to work with when searching for a home. With this number, you’ll know how much you can offer comfortably when you find that house you fall in love with.
Make A List Of Priorities
Finding the “perfect” house usually requires that you make a few compromises along the way. It’s very unlikely that you’ll find one house that gives you everything you want in one place without a bit of imagination. Jot down all of the things about a home that are the most important to you. These items could include:
- The neighborhood
- Big backyard
- Open floor plan
- Number of bedrooms
- Hardwood floors
- The size of the rooms
- Style of the house
- Granite countertops
Whatever is important to you should be on the list. Next, go through the list and see what can be compromised on. There are probably a few luxuries on the list that you could stand to give up in lieu of something else.
Once you find that home you know that you absolutely want to live in, you’re going to want to make an offer. Let your realtor know immediately that you’re interested in the home and they can get to work. Your realtor can help you to make an offer that’s reasonable based on the asking price and your budget. Your offer doesn’t have to be thousands of dollars over the asking price for you to win the bid. There are a couple of strategies that can help you to land the right home even if you’re not stretching your budget to the max.
Showing You’re Serious
Taking steps like being pre-approved and having all of your finances in order can help to give you the upper hand in the house hunt. Sellers don’t want to deal with a buyer who is ultimately going to have issues where the deal will fall through.
The Offer Letter
Writing a letter along with your offer is a great personal touch to help you land the home of your dreams. If a seller knows that the home they have lived in and loved will go to another owner who is going to appreciate and take the same great care of the home, they will be more likely to go with you as a buyer. First, tell the seller a bit about yourself and why you love the home so much. Compliment the landscaping. Tell the seller just how much your kids are going to appreciate living in the home. Don’t be afraid to get too personal when it comes to writing an offer letter to the sellers. They will appreciate honesty and a candid approach in the sometimes all too serious matter of buying a home.
Conducting an in-depth home search may prove to be difficult, particularly for individuals with limited time and resources at their disposal. Fortunately, there are lots of things that you can do to streamline your home search and discover your ideal residence without delay.
Now, let's take a look at three tips to help you seamlessly navigate the homebuying journey.
1. Create Homebuying Criteria
Not all homes are created equal, and the dream house for one buyer may differ from the dream house for another. However, if you craft homebuying criteria, you can define your dream house and map out your property search accordingly.
Think about the features you want to find in your dream residence. For instance, if you want to own a house that features a dazzling backyard, you can explore residences that offer this feature. On the other hand, if you want to purchase a home that boasts multiple bedrooms, you can search for residences that provide plenty of space.
Consider where you want to reside, too. By doing so, you can narrow your home search to residences in a select group of cities and towns.
2. Know Your Homebuying Budget
Get pre-approved for a mortgage – you'll be happy you did. If you enter the real estate market with a mortgage in hand, you'll know exactly how much you can spend to acquire your dream residence. Then, you can search for houses that fall within your price range.
Obtaining a mortgage will require you to meet with banks and credit unions. You should review mortgage options from a variety of banks and credit unions, as this will allow you to select a mortgage that complements your finances.
Don't hesitate to ask mortgage questions, either. Banks and credit unions employ home financing specialists who are ready to respond to your mortgage queries. Plus, these specialists can offer home financing insights to help you make an informed mortgage selection.
3. Hire a Real Estate Agent
A real estate agent understands the challenges associated with finding a great house at an affordable price. Thankfully, he or she can make it easy for you to conduct an in-depth home search in no time at all.
Typically, a real estate agent will keep you up to date about new houses that become available in your preferred cities or town. If you want to view any of these homes, a real estate agent will set up a house showing. And if you find a home you want to buy, a real estate agent will help you craft a competitive offer to purchase this residence.
As you get set to search for your dream home, you should try to prepare as much as you can. By using the aforementioned tips, you can simplify the process of conducting a comprehensive home search. Best of all, you can use these tips to discover a wonderful home that is sure to serve you well both now and in the future.
Making an offer on a home you’d love to buy is arguably the most stressful part of the buying process. You’ll be worrying about making the right offer, whether you’ve presented yourself in the best possible light, and just how much competition you’re up against.
Today we’re going to help you alleviate that anxiety by giving you the most common real estate offer mistakes to avoid, and show you how you can increase your chances of getting the perfect home for you.
1. Do your research on the house
You have a lot of research to do before making an offer on a home. You’ll want to know the price the home formerly sold for and improvements that have been made and that will need to be made if you move in.
It also helps to know the seller’s situation. Are they on a deadline and moving out-of-state? If so, they might be tempted to take one of the earlier offers they receive.
2. Know your own financial limits
Before you ever make an offer you’ll need to know how much you can spend. This isn’t just a matter of offering the maximum amount you’re preapproved for. You’ll have to factor in moving expenses, final payments on your last rent or mortgage, changes in utility costs, and more.
3. Don’t offer your full preapproval amount
Sellers who know that you’ve offered your maximum preapproval amount may be wary of selling since they know you lack room to negotiate your budget and therefore might have a higher chance of backing out of the offer. They might favor other buyers who have room to negotiate and account for unexpected changes in their budget or of rising interest rates.
4. Avoid aggressive negotiation
We know the stakes are high for everyone involved in making a real estate deal. However, sellers are more likely to accept the offer of someone they trust and like over someone who seems to be trying to gain leverage.
Always be cordial with your offers and support them with numbers--explain to the seller why you chose the number you did, so that they can understand your reasoning.
5. Don’t attempt to gain leverage by waiving a home inspection
By law, you are allowed to have a home professionally inspected before purchase. Waiving this right is sometimes misconstrued as a way to tell a seller that you trust them and don’t want to cause them any unnecessary headaches.
The reality of the matter is that if you truly do want to own their home, sellers understand that you want to know what you’re buying.
6. This isn’t the only house you can be happy in
Hunting for a home is hard work. Once you find one that seems perfect for you or your family, it can seem like everything depends on your offer being accepted.
However, the fact is there are endless houses on the market, and next week a new one could be put up for sale that is even better than the home you’re hoping for now.
If your offer isn’t accepted and you don’t feel comfortable committing to a higher price, move on to the next house knowing that you made the best decision under the circumstances.