Tuesday, October 5, 2010

Is there an expense if I put an offer in on a house like an inspection and all that?

I know I got a little long winded yesterday so today I will try to keep it shorter.  I know that a lot of people have asked for this information so rather than post it directly back to them, I thought I would post it on a blog so more people could learn from it.

Today I would like to focus on on what is expected of you when you make an offer.  The question was asked of me recently, "is there an expense if I put an offer in on a house, like an inspection and all that?"

Uhhh yes!  When you have found your dream home and you decide to make a written offer to purchase it, then you are entering into a legal and binding contract by stating what you are promising to fulfill in order to get the title to the property.  This typically means that you intend to obtain financing, pay costs, close by a certain date and other items that are mutually agreed upon.  To do this you submit earnest money to show good faith to the seller that you intent to meet your end of the deal.  When the seller agrees to the offer, they also enter into a legal and binding contract to do the things they promise, such as providing a clear title and warranting the property to you on the agreed upon date and allowing possession on a certain date.

That is why it is always best to work with a licensed Realtor, who can guide you through the process and protect the parties involved.

As far as expenses involved, when you submit your offer, you pay an upfront amount to show good faith and this is called the Earnest Money.  If the contract is not fulfilled then there is the chance of losing this money if you are the reason it was not completed.  Other expenses could be any services you order prior to closing such as an inspection or repair item.  These expenses are usually the responsibility of the Buyer, unless the seller has agreed to pay for them.  If the inspection shows there are items that need repair, the legal contract to buy has a time frame that allows for objections and resolutions.  If this time expires, then the repairs can be the responsibility of the Buyer.  It is imperative to follow the contract to the letter, especially when there are time frames involved.

Never make an offer on a property that you are not sure about following through with.

We had 7 new properties listed this morning, 9 price changes and no solds today.  Went to the MLS meeting this morning and there were 29 properties highlighted.  The Buy of the Day has to be one on the west side of town with 4 bedrooms, 2 baths and a 2 car garage situated on a lot surrounded by a grove of Aspen trees.  Property features a sun room, oversized garage, RV parking, nice deck and central air.  All for only $210,000.  Call me today to take a look at this property.

You can also find many other listings on our website at Hill Realty Services, or you can reach me at Brenda Sanders.

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