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Real Estate Purchase Contract Errors That Can Cost You Money

In today’s real estate market, homes are selling quickly in certain areas. A person selling their home can find themselves in a position where they have more than one buyer submitting an offer to buy their home. You need to make sure that you go through the offer very carefully. This is why I HIGHLY suggest that you want to work with a real estate professional.

Staying in touch.

In my 9+ years of helping people buy and sell homes, I understand the excitement that comes from having more than one person interested in buying your home but you REALLY want to go through the ENTIRE contract, not just focus on their purchase price. If you are selling your home and working with a real estate agent, make sure that they go through the contract with you and explain exactly what the person is offering.

Worried couple interacting while checking the bills

Unfortunately, there are real estate agents that don’t go through a buyer’s offer with the seller which ends up costing the seller a lot more money than they expected by the time they come to the closing table. Selling a home is a huge financial transaction and it’s extremely important that you know exactly what the buyer is asking for and the time frames that they are asking to have things done, such as inspections.

Here are just a few key items to look for on a buyer’s offer:

  • Purchase price
  • A deadline date for any/all inspections on the property
  • Amount of credit, if any, that the buyer is asking for you to give back to them, from their loan to cover their closing costs Note: It’s very common for people to ask the seller to allocate a portion of their offer price to go towards their closing costs since they may/may not have the funds in the bank. Remember the closing cost is deducted from their purchase price so you might suggest that they increase the purchase price so that you walk away with the amount you need.
  • The type of financing the buyer is obtaining to buy your home. Note: There are many different types of mortgages on the market and each loan has different qualifications. It’s best to double check with the lender to make sure that loan officer has done their due diligence of verifying the buyer’s employment, checking their credit, etc.
  • A closing date.  Note: This is very important because the buyer may need to sell their existing home in order to purchase and would like extra time or they may be moving from another state. You need to make sure that their proposed closing date is in alignment with the timeframe so YOU can successfully move out of the home.

Real estate contracts are always updating to keep current with new state rules and regulations. Your real estate agent should be on top of their A game with the current contract so that when you get an offer on your home, you know EXACTLY what you are agreeing to.  This will provide a more smooth transaction and experience for everyone involved.

Written By: Shena Omotola, Dream Home Specialist & Broker Owner of Skyward Realty – Skyward Realty services Chicago, Suburbs, and Northwest Indiana

P.S. Feel free to email me any questions. I’m always here to help. Shena@SkywardRealty.com

Shena Omotola

 

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