Protect Your Self, Include Contingencies in Your Offer.
Category: Real Estate Trends
Published: Monday, December 22, 2008
If you are planning on purchasing an REO in Murrieta, make sure to include contingencies when writing your offer. It is rare that a buyer can pay cash when purchasing real estate. Typically the sale is financed. This article will explain why it is important to include contingencies when placing an offer. In the event that your offer is accepted by the seller it is considered a contract and the failure to include contingencies can be costly.
Here is an example of how neglecting to include a contingency in your offer can cost you. After months of searching for the perfect foreclosure in Murrieta you finally find one you're comfortable purchasing. After coming up with a thoughtful offer, your real estate agent submits it to the seller. You assume that you will secure a loan with an eight percent interest rate. You have budgeted for a mortgage payment based on this interest rate. After waiting for the banks approval you learn that while you were able to secure a loan, the interest on the loan was higher than you initially estimated. This increase in interest will add a few hundred dollars to your monthly mortgage payment. You decide that you no longer can afford this home and decide to withdrawal your offer, can you exit without penalty? Absolutely not. The earnest money that you provided is not refundable. This is why it is important to place contingencies in your offer. By adding the stipulation that you receive a certain interest rate for the offer to remain valid, you are protecting whatever money you have invested.
It is important to be proactive when purchasing real estate in Murrieta. Be sure that you know your responsibilities before entering any contracts. Your real estate agent is your best source.
The real estate agents at Oak Tree Realty Group are always available to lend an ear and answer any of your real estate questions. Please give them a call at 951-973-7177 for any inquiries.
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