No matter how much time you spend on researching and educating yourself about your home purchase, it’s hard to cover every detail. Here are a few tips for avoiding rookie mistakes with your first home purchase. Earnest money is a deposit you pay when you make an offer on a home—it’s a way to show the seller that you mean business. Usually you can’t get it back, but there are several circumstances that allow you to recover your earnest money.
Appraisal contingency: With an appraisal contingency, you can recover your earnest money if the home is appraised for less than your offer. This gives you a better negotiating position—if the seller doesn’t agree to a lower price, you can get your earnest money back and walk away from the deal.
Major problems with the home: It may be your dream home at the surface level, but an inspection could reveal major, major problems—such as issues with the foundation, or flood damage. In that case, you can get your money back if the seller doesn’t agree to a lower price.
The seller backs out: Obviously, if the seller changes their mind about the transaction—maybe they decide not to sell, or accept a higher offer—you get your earnest money back.
Your house hasn’t sold: Many buyers can’t afford a new home if they’re still financially responsible for their old one. In this case, you can work a sale contingency into the contract, and get your earnest money back if the home doesn’t sell soon enough.
Financing issues: Though there are some limits on financing contingencies, you can get your money back if you’re unable to get a loan.
Author:Michael Simpkins Phone: 813-541-3307 Dated: July 13th 2016 Views: 228 About Michael: ...
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DREAMING OF BUYING A HOME? WHAT YOU NEED TO KNOW BEFORE YOU
"We are out-of-state buyers, moving to the area. We had very little knowledge of the area, or of the home buying process. Mr. Simpkins spent months working with us via e-mail, answering our myriad of questions and offering us invaluable advice about what to look for in our potential new home. Once we narrowed down our search, we made arrangements to fly down for one weekend, as that was all that our work schedules would allow. It seemed an impossible thing to pull off in one weekend, but he was totally prepared for us. We looked at 23 homes, IN ONE DAY!! Yes, 23!! He had printed each of the listings we had selected, and had checklists and spaces for notes and questions on the back of each one. We had all planned for a twelve hour day of marathon home showings. We finished in 8 hours! We made an offer on our favorite home that evening, and we accepted a counter-offer the next day at noon!
Mr. Simpkins was absolutely amazing to us throughout the entire process! He was extremely professional, yet always personal. He was responsive and always accessible, even at very odd hours! He made what could have been the overwhelmingly daunting task of buying a new home nearly seamless!
Not only would we recommend Mr. Simpkins to others, we have already done so, several times! He is, quite simply, THE BEST!!"