When you find your dream home, whether it’s a condo in Long Beach or a beautiful home for sale in Lakewood, you’ll tell your Lakewood Realtor® that you’re ready to make an offer.
She’ll put together a purchase contract, which is the fundamental document you need in order to buy a house.
What is a Purchase Contract?
A purchase contract is a legally binding document that tells a seller that you’re willing to buy his or her home if certain conditions are met. It outlines what comes with the home as fixtures, the terms of the sale and other vital information, and contingencies.
What’s Written in a Purchase Contract?
Things that are considered fixtures transfer from the seller to the buyer with the purchase of the home, and they include things that are permanently affixed to the house, such as dishwashers, ceiling fans, and light fixtures; you can also negotiate other fixtures if they don’t already come with the home, such as refrigerators, washers and dryers, and other items.
Terms of Sale and Vital Information
Your purchase contract will include the terms of the sale, such as when you intend to close on the property, and your personal information—your name, address, and other information that’s necessary to go through with the sale.
Contingencies, which are what your purchase agreement hinges on, are ways you can walk away from the transaction if it’s not working out for you. The most common contingencies involve home inspections, financing, and appraisals.
If the home inspection turns up issues that you’re not willing to deal with, you can ask the seller to fix them or lower the home’s sale price. In many cases, your third option is to walk away from the transaction. With this contingency in your contract, you should be able to get your earnest money deposit back.
If you can’t obtain financing to buy the property, you don’t have to buy it… as long as there’s a financing contingency built into your purchase contract. Typically, you’ll get to keep your earnest money deposit if you abandon the transaction.
Your lender will send out an appraiser to determine how much money the home is worth. If the appraiser determines that the home is worth less than what you’re asking the lender to finance, your lender probably won’t be willing to give you your originally requested amount. You can either come up with the difference in cash and allow the lender to give you the amount the home appraised for or ask the seller to lower the home’s sale price. If neither of those options works for you, you may be able to legally leave the transaction with your earnest money deposit back in your pocket.
Do You Need to Talk to a Realtor About Buying a Home in Lakewood or Long Beach?
If you’re ready to start your home search, we’re here to help. Call us at 562-882-1581 to let us know what you need. We’ll help you find it.
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