There are many facets to an offer to purchase Chaska MN real estate other than the price. All of these terms need to be put in writing and submitted to the seller for their consideration.
Minnesota is among other states where real estate agents fill out blank forms that have been pre-approved by the state realtors association and the association attorneys. Regardless of the real estate agents experience make sure you, the buyer understand the details of the offer before it is presented to the seller.
Understanding what the real estate agent tells you is not enough. Buyers should read the purchase agreement themselves and ask questions if the terms need clarification. Some buyers even ask for a copy of the completed forms to review in advance of meeting with their agents so that they can review the details.
Most purchase agreements include contingencies that protect buyers. These contingencies can include those for the sale of another property, financing, inspections and appraisal to name the most common. Contingencies serve to protect the buyers by requiring certain conditions to be satisfied before the buyer is obligated to move forward.
On example of a contingency is the Inspection Contingency. In Minnesota the approved inspection contingency gives the buyers the opportunity to specify when the inspection will be performed, how long after the inspection the buyer has to notify the seller of defects they want corrected, how long after the notification the buyers and sellers have to negotiate the terms for handling the defects and notwithstanding any other terms to the contrary, how long after the inspection the buyers have to notify the sellers that they are cancelling the purchase agreement because of defects discovered during the inspection.
During the previous intense sellers market many buyers upon advice from their agents submitted offers with no contingencies which often times made their offer stronger than a higher priced offer that had contingencies. Unfortunately there were occasional lawsuits after closing once defects were discovered that the buyers subsequently discovered.
In this buyers market most buyer’s agents and buyers don’t hesitate submitting offers with contingencies but occasionally waiving a contingency may make sense as long as the buyer is aware of the consequences. In one case, buyers who dearly wanted to live in the Lyndon Hills neighborhood of Minneapolis made an offer on a home without including an appraisal contingency. They knew that it was possible that the home may not appraise for their offer price because of the limited number of sales in the area. Sure enough the home did not appraise for the full offer price so the buyers increased their down payment amount to make up the difference.
The Minnesota approved forms require including specifics for Earnest Money, when the buyer takes possession, personal property such as the range, refrigerator, washer, dryer, the closing date, down payment percentage and mortgage percentage. Sellers will want to specify excluded items which could include such things as specific chandeliers window treatments etc.
Waiting till after the contract is signed to pin down any loose ends may be too late. Asking sellers to commit to other terms after the contract is signed can turn a previously agreeable seller into a very disagreeable seller even if your request seems reasonable.
When all is said and done buyers need to know exactly what they are committing to so stay informed.
Possibly Related:
{ 0 comments… add one now }