"What happens if I make an offer on a home and then change my mind or am unable to purchase it? Do I just lose that money?"
The simple answer is "no". If you and your Realtor work diligently, your money will be protected. A standard Purchase & Sale Contract has built-in contingencies. These contingencies are the safeguards that will protect your deposit.
These contingencies may include financing and building inspection. For example, if you write an offer and then can not purchase the home because you can not get financing you can withdraw your offer as long as you and your Realtor submit a termination addendum in the time frame that your contract permits.
Similarly, if items come up during the building inspection that you were not anticipating and are not comfortable with (roof needs to be replaced, foundation needs repairs etc.), you can (1) request that the seller fixes those items (2) request that the seller financially contributes towards those repairs or (3) submit a termination addendum in the time frame that your contract permits.
These are just a couple of contingencies that can be included in a Purchase and Sale Contract. Other contingencies may include water quality, radon...or anything else that is important to you.
Work with a professional Realtor that can help you prepare a Purchase & Sale Contract. If the contract is written correctly you and your assets will be protected.
Author:Dan Cypress Phone: 802-598-6219 Dated: March 31st 2017 Views: 302 About Dan: Dan is analytical in nature, as his MBA would suggest, but nine years ago he transitioned out of the...
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Dan is analytical in nature, as his MBA would suggest, but nine years ago he transitioned out of the world of accounting and financial management and into real estate. His deliberate and rational approach has helped him assist hundreds of buyers and sellers, ensuring that their transactions not only happened, but happened smoothly. He offers sound advice, and above all else looks out for the best interest of his clients. “Selling doesn’t feel good,” Dan says. “My job is to educate my clients. I share my market knowledge and help them to make smart decisions on their own. If I’m honest and I do my job right, I don’t have to ‘sell’ anything.”
As a co-founder of Element Real Estate, Dan has recently taken great pleasure in growing the business, both by adding new members to the team and by increasing the company’s exposure. At the center of everything he does is a dedication to understanding people’s needs and better equipping himself – and his team – to meet them. He takes pride in his work, the people around him, and the community in which he lives.