Regional Housing Benefits
The S&P index report that home prices went up in the spring season also included a valuable observation: that the country seems to be “back to regional housing markets, rather than a national housing market where everything rose and fell together.” While the implications might not be immediately apparent, this is actually quite good news for buyers. Regional housing markets have economic benefits, stability and offer great deals to buyers in the right circumstances. How can the country’s regional housing markets help you? Continue reading “Benefits of a Regional Housing Market” »
Dispute Resolution
Many new homebuyers, or even homebuyers who have purchased before but simply never run into legal problems during a purchase, underestimate how quickly legal costs can mount. Dispute resolution may seem unnecessary, so you may decide not to include dispute resolution language in your purchase and sale agreement. Or maybe you decide you don’t want to give up your right to court, so you decline to include a dispute resolution clause in your contract. Unfortunately, you may find yourself having to go to court after all, and you could be shocked at how quickly legal fees mount. Try to avoid legal action to reduce costs and keep your sale moving forward in a win-win scenario. Continue reading “Dispute Resolution can Become Expensive, Fast” »
Avoid Problems
We’ve seen how costly disputes can become when you’re buying a new home. The easier avenue by far is to avoid disputes altogether by drafting a clear, definitive purchase and sale agreement. Most problems occur when the language in a contract contains room for interpretation, or when a contract doesn’t include language to address a specific problem or eventuality. To avoid disputes, write a clear contract that defines all subjective terms and clearly states all expectations. Continue reading “Avoid Problems by Avoiding Sloppy Drafting” »
Notices and Extensions
When you sign a purchase and sale agreement, both you and the seller implement various penalties and deadlines for certain parts of the purchase. You may have two weeks to obtain financing before the financing contingency becomes null and void, or the sellers may have three weeks to resolve home inspection items or you can renegotiate or pull out of the deal. When you’re moving through the home purchase process, it’s not enough to be on time. You must also keep sellers informed every step of the way, and negotiate extensions quickly if you’re going to miss a deadline. Continue reading “Notices and Extensions in Your Purchase and Sale Agreement” »
Lease Purchase Options
In some cases, when you’re buying a new home, a lease option makes more sense than an outright purchase. Maybe you’re trying to save money for a downpayment to qualify for a conventional loan. Or maybe you think your financial status will change, and you can use the time to improve your credit rating and financial situation. Or maybe you’re not sure about buying, and want to live in the house for a while to see if you like the neighborhood, if the commute is ok and if you really want the home. Whatever the reason, if you’re considering a lease purchase sale, make sure you get the paperwork right. Continue reading “Lease-Agreement Purchase Options” »
Slow Sales = Opportunity
While the August S&P report on home prices signals that home sales may be slowing in many parts of the country, this is actually great news for buyers. When sales slow, buyers typically get better prices, better terms and greater selection to find their dream home. The pace of sales for previously occupied homes is trailing last year’s 4.91 million sold. This is the fewest sales since 1997! While this can spell bad news for sellers, it means that buyers have a great advantage in this housing market. Foreclosures and short sales are also on the rise, representing more opportunities for buyers to get great deals. Continue reading “Slow Sales Equal Great Opportunities for Buyers” »
Date of Possession
Date of possession is something you want to include in your purchase contract. Don’t assume that you’ll automatically possess your new home when you close on the property. You and the sellers should finalize this detail while you’re negotiating the sale. In some cases, the sellers may need to retain possession longer, and you may be able to negotiate more favorable terms in return for giving them more time to possess the property. In other cases, the sellers may simply not be gone by the possession date, in which case it behooves you to include penalties in your purchase agreement. Make sure you establish all of these details when you’re negotiating the sale. Continue reading “Specify the Date of Possession” »
