Home prices are dropping fast in 2023! So if you’re ready to become a homeowner, now’s your chance.
Buying a house is the most fulfilling investment you’ll ever make, and it’s important to understand all the details. Read your purchase agreement carefully and discuss any disputes with the seller before signing.
The purchase agreement plays an essential role in helping you secure the home of your dreams. Keep reading to get an in-depth look at this document so you can use it to your advantage.
What Is a Purchase Agreement?
A purchase agreement states the terms and conditions of buying a home. It’s a legally binding contract that both parties must sign before it becomes valid.
Components of a Purchase Agreement
Your purchase agreement should clearly state who’s buying and who’s selling. Besides these basic components, some contracts will also include additional clauses that address title insurance or warranties.
Here are some standard features you should include in your purchase agreement.
Property Details
The seller or real estate agent should list clear details about the location, size, condition, and amenities of the investment property being sold. If you’re buying a new home under construction, your purchase agreement should contain a schedule of the home’s features and when they’ll be completed.
Purchase Price and Financing Details
If you’re splitting the home-buying cost with someone, make sure everyone knows how much they need to contribute. Make sure your purchase agreement states the individual payments, what happens if someone can’t make a payment, and possible alternatives.
Don’t forget to mention any loans either of you took out in the financing section.
Contingencies
Contingencies are clauses that allow you to back out of the sale if certain conditions aren’t met. These notes protect the buyer and seller from unforeseen circumstances. For example, if you’re buying a house, you may want to include a contingency that allows you to cancel the deal if your lender denies your loan application.
Common Mistakes to Avoid
Don’t be afraid of the negotiation process. It’s a chance to learn more about the seller and their motivation, as well as assess what kind of deal makes sense for both parties.
If anything is excluded from the property, confirm that the exclusion is in your contract. For example, if there is no furniture included with the house purchase, the buyer should state this.
Finally, always include contingencies in your purchase agreement that offer both parties some flexibility. Alternative closing dates, for example, can be useful if you need more time to get your financing together.
Make Your Real Estate Search More Efficient
Your real estate agent should discuss your purchase agreement with you before signing. If you’re not happy with it, don’t be afraid to bargain or walk away from the deal. You can always find an even better property with the help of Texas Prime Real Estate.
Contact us today if you’re ready to buy your dream home. We’ll help you find the right property and negotiate the best possible deal.
