When a property goes on the market, it falls under two general categories, For Sale By Owner, aka FSBO, or a Realtor® lists a property representing the current owner. A FSBO has a property owner selling the property on their own and may be limited by their ability to advertise their sale property. Realtors® have a vast, complex database of all properties listed by other Realtors® called the Multiple Listing Service, or MLS, and it is exclusive to Realtors only. Some websites list and show properties in the MLS, but those are time-delayed and don’t represent current market conditions. A Realtor® has access to live data and will know if a property is still on the market. Realtors® are not free and will take a percentage of the sales price, called a commission, as a fee for their service. Buyers often will have a Realtor® represent them to engage with a property for sale as well. A buyer’s Realtor® often gets compensated by earning a portion of the listing agent’s commission. It can be quite complex, but having the right team represent you and your needs is paramount to a healthy property experience. We work with many people in the industry and can refer you a Realtor (and also an attorney, property inspector, or other professional services you may need) and you can choose who best fits your needs. The one team member we hope you do choose is us, GoAhead Finance, to meet your financing needs. With our extraordinary customer service, extremely low costs, competitive rates combined with our 30 years of experience, you will be well represented and have confidence in all of your real estate decisions.

The question is clear, but the answer can vary wildly, from 20% or more of the purchase price to zero money down. You should put as much down as you can afford and be comfortable with, but you may not be asking all the right questions to determine what that number is. It’s best to give us a call and let GoAhead Finance listen to your needs and help chart the best path forward for you to meet your short, medium, and long term financial goals.

A sales contract is a legal agreement and it is extremely important to know how to read and execute a sales contract and probably get an attorney who can help with this process. Each transaction is unique and challenges always arise that can put your earnest money at risk. Checkpoints and safeguards are built into a contract to protect the buyer and seller, and if not done properly, it can have an adverse affect on the parties involved in a transaction. Below are some topics to help you better understand what is in a property purchase contract.

The seller wants to know how serious the buyer is about purchasing their property. One way buyers can show their commitment to purchase is by is by making a deposit with their purchase contract known as Earnest Money. This can be as little as $1,000 and as much as the entire down payment. It is up to the buyer to propose and the seller to accept. If you are working with a Realtor®, consult with them on how best to submit an offer to buy a property and how to decide on the most effective earnest money deposit. NOTE: Earnest money must be refunded if a sales contract falls apart, BUT beware that if the clause for canceling a deal is not fully met, it could jeopardize your earnest money deposit and the buyer can keep it. That is why it is highly advisable to have a Realtor® on your team as well as an attorney.

Almost none of us are experts in contract law, so built into most property sales contracts, both parties agree that within a certain timeframe, the sales contract can be reviewed by an attorney to clear up any issues in the contract. If those changes cannot be negotiated, the contract becomes null and void and earnest money is returned.

Like the attorney review period, most property sales contract include a property inspection clause that gives the buyer the right to bring a professional inspector to the property and confirm that everything is in proper working order within a predefined time frame. The cost of the inspection is with the buyer. If there are issues, the buyer can ask for remedies. If these cannot be agreed upon, the contract become null and void and earnest money is returned.

A mortgage contingency is included in a sales contract to protect buyers if they can’t qualify for financing and can’t afford a property without a loan. It means they can back out of the contract within a specified period of time with no penalty and their earnest money will be returned to them. NOTE: The buyer must apply for the mortgage that is detailed in the sales contract. If they don’t, it could jeopardize the earnest money deposit.

Sometimes a buyer owns a home and needs the proceeds from the sale of that home to buy their new home. A sale contingency means that the seller agrees to wait (as defined in the contract) until the buyer’s current home is sold. Working with a Realtor® can help navigate and structure a purchase contract that protects the buyer from losing earnest money if the sale of one’s current home falls apart.

To settle issues that might arise in the process of buying a property, a seller can offer a monetary credit at the closing to pay for the remedy. For example, if a home needs new carpeting, the seller can offer a credit for new carpeting so that the deal can close before new carpeting is installed. There are restrictions on how much a seller credit can be or the severity of the issue (like structural) in question, so always consult us as well as your Realtor® and attorney to determine the best path forward to buy the property.

The closing date is the date at which the property will officially transfer from the seller to the buyer. It is stated on the purchase contract and cannot be changed unless both parties agree in writing on a new closing date.