Important Tips for First Time Home Buyers

Purchasing a home is by far the largest single investment for majority of the families in US and the following important tip for home buyers is a must read for first time home buyers.  In Florida, most standard real estate sales and purchase contracts are drafted by real estate agents and typically lean more toward protecting the buyers than the sellers.   Regardless of who is writing the real estate purchase contract there are many points in contracts for buyers to be aware of that will save money and headaches when something goes wrong.  

The first area to pay attention is wherever the term “contingencies” is used in the contract.  Contingencies are  provisions in the contract that could work for or against any buyer if certain conditions are not met.  Based on some of these contingencies the buyer could void the contract and have all of the deposit and down payments returned to him without any further penalties.  There could be many contingencies in any contract, but the 3 most prominent contingencies in all real estate purchase contract are:

• Appraisal Contingency- if the property is appraised for less than the contract price then the buyer has the right to cancel the contract.
• Mortgage Contingency- if the buyer is unable to secure a loan from financial institutions the contract is cancelled
• Inspection Contingency- if an inspection by a professional inspection company reveals problems with the house normally there are few remedies that precedes the cancellation.  If the repairs are minimal  the seller might offer to fix them or compensate the buyer by offering cash at closing accordingly.   

There are more contingencies in the purchase contracts that could vary depending on the type of the property and the state that the property is located in.  The examples are the Mold Contingency that calls for a Mold Inspection or HOA Contingency that puts the approval by the homeowner or condo association as a condition for the contract to succeed.   

Working with an experienced real estate professional is not only finding the right home but to enjoy the legal rights that are set to protect the buyer and sellers when deemed necessary.