Your Offer is Accepted! Now What? (Part 2)
In part 1, we looked at what happens immediately after the seller accepts your contract to purchase. In part 2, we’ll cover contingencies ― those tasks you must complete according to the contract’s stated timelines.
Remember all those deadlines we set for you when I assisted you with filling out the purchase agreement? Those items are known as contingencies, and we must work diligently and quickly to fulfill the requirements of them. The most common contingencies include:
Various inspections are, aside from the appraisal contingency, the most common contingencies, so they deserve special attention.
A whole-home inspection by a licensed, experienced home inspector is a must, whether you are purchasing a newly built home or an existing home. Once the home is in your name, it’s your responsibility – warts and all.
Remember, a home inspection is a visual inspection of the home’s major systems. The inspector can’t tell you what is lurking behind walls or beneath floorboards.
Inspections typically take between two to three hours and you should plan on attending yours. There is nothing that replaces being there when the inspector notices a problem and hearing about it first-hand. Feel free to ask questions and keep asking until you get answers.
If the inspector notices items that merit closer scrutiny you may need to hire additional professionals, such as a pest inspector, a licensed contractor or an engineer.
The most important part of the lending process is the home appraisal. The lender chooses an appraiser who will visit the home to determine its current market value. The value must be the amount you offered for the home or more.
If the appraiser determines that the home is worth less than the amount you offered, you have a decision to make between the following choices:
Generally, the seller needs to remedy the situation by lowering the price. After all, should you decide to walk away from the deal, the next buyer’s appraiser will come up with a similar valuation. If the seller truly wants to sell the home, she will need to lower the price.
Once the contingencies are removed, we’re clear to close! In part 3 you’ll discover what you need to know about the closing process.
Blog Archive2016-09-16 16:23:17
The Home-Buying Wish List
3 Common Home Buying Myths
3 Tips for Attending Open Houses
2 Things to Consider Before Buying a Townhome
4 Tips for Home Buyers with Boats
2 Tips for the Luxury Home Buyer
What is a Buyers Market?
Writing a Strong Offer
3 Important Aspects of the Purchase Agreement
3 Things to Know about Buying New Construction
2 Things to Know about Home Inspections
What to Look for in the HOA Documents
HOA? Beware the Rules and Regulations!
Everything you need to Know about Home Warranties
4 Tips to Close Quickly on a Home Purchase
Your Moving Checklist
Buying your First Home? Avoid these 4 Common Mist
Tips for Buying a Fixer-Upper
First Time Homebuyer: Steps to Success (Step 1)
First Time Homebuyer Steps to Success (Step 2)
First Time Homebuyer Steps to Success (Step 3)
How much can you afford?
The Essential Real Estate Glossary
What is the Earnest Money Deposit
Home Appraisal Basics
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