Purchasing your first home or investment property is a milestone. However, if you are unfamiliar with the process, you can end up paying more than you expected.
Finding the right property with the right conditions takes time. After you spend the time and money finding the right place, you need to ensure that your real estate contract has all the necessary conditions, provisions and clauses.
Every real estate contract should have contingencies. For example, you should have a statement that allows you to void the contract if the home inspection reveals major problems with the house.
Another contingency you may consider is the sale of an existing property. If you cannot sell your current or existing home by a specific date, you need a contingency that allows you to walk away from the new home purchase.
If you cannot purchase a new property with cash, you should also include a finance contingency that allows you to walk away if you cannot secure financing at an expected interest rate.
Include any seller expectations. For example, if you expect the seller to pay for upgrades or repairs, such as a new roof, you need to include these conditions in your contract.
In addition, closing costs include several types of fees, from escrow and title search fees to notary and recording fees. You need to clearly state which party, you or the seller, is responsible for paying these fees.
Finally, clearly state everything you want in the purchase, such as fixtures and appliances. You can even negotiate the window coverings.
Do not rely on a verbal agreement in any part of your real estate sale. To protect yourself and your finances, do some research and learn more about what to include in your real estate contract.