An Accepted Contract is Just The Beginning!
March 19, 2018 | TAR Staff
As a homebuyer or seller, an accepted contract
is exciting. But hang on … the deal’s not done. Thankfully, if you’re working
with a REALTOR®, he can guide you through all the potential twists and turns on
the way to closing.
An
option to back out
For starters, most purchase contracts include
a termination option. The buyer pays the seller a fee for a specified period of
time during which the buyer can cancel the contract. The buyer can exercise
this option for any reason. In fact, he doesn’t even have to explain why.
A
closer look at the property
Buyers usually hire inspectors during the
termination-option period. Inspections that reveal items in need of repair
may prompt a buyer to ask for a price reduction or repairs prior to closing. Or
the buyer may simply choose to cancel the deal.
Financing
considerations
Transactions sometimes unravel when a buyer
cannot obtain the financing specified in the contract or the property does not
meet the lender’s requirements. For example, appraisals can come in lower than
the purchase price, or there may be issues with obtaining insurance for the
home.
The
list goes on
Option periods, inspections, and financing are
three common trouble spots for transactions, but there are many others.
Problems with title insurance or the survey, disagreements about items that
convey, issues related to homeowners associations, or damage to the property
after acceptance of the contract but before closing are a few examples of
issues that can arise.
You
have a valuable resource
Communicating with your REALTOR® about each
stage of the transaction will minimize surprises and increase the chances that
your transaction will proceed smoothly.
Call me for all your real estate needs! 903-880-5351
