Month: February 2014

What Contingencies Are In My Purchase Offer?

What Contingencies Are In My Purchase Offersusan rupert1

What Contingencies Are In My Purchase Offer – When writing an offer, there are certain contingencies you should be aware of. Contingency is essentially a word for “a way of qualifying your obligation to fulfill a contract”. Purchase offers have contingencies built in that need to addressed before closing on your new home. So what contingencies are typically included in an offer?

Financing

A financing contingency is important and can clarify the financial implications moving forward. This will help to make the sale about you, as the buyer, and will help you to secure an acceptable loan or other type of financing that you are using to purchase the home.

Insurance

Depending on the location of your new home, you might want to consider an insurance contingency. This will help to protect you in the event of a natural disaster like earthquake or flood. You have the ability to make contingent on receiving an insurance commitment from an insurance agent in writing.

Appraisal

Appraisal contingencies can work in favor of the buyer or the seller at any given time. If the buyer can’t get an appraisal that is at least the sellers asking price, the buyer has the ability to walk out of the agreed upon deal. On the other hand, if the buyer is unable to get an appropriate appraisal, they can ask the seller for a lower purchase price. If the seller then refuses, they have to ability to back out of the deal.

Seller Contingency

As a buyer you have the ability to include contingencies in your home offer, so the same goes for the seller. The seller has the ability to put contingencies on the sale of their home to you. For example, they can make the sale of their home to you contingent upon whether or not they’re able to find a new home to move into in the given time period.

Inspection Contingency

Before you purchase the home you can have the home inspected by a professional. If all looks good and the home passes an inspection you can sign off to remove the contingency. If a few issues pop up in the home inspection you may be able to submit a request to remedy to the seller. A request to remedy allosw you to make some of the repairs a part of the purchase contract and negotiate for the seller to help you remedy certain issues with the home. Although not always necessary, it is an option.

Before writing an offer on a home, make sure you know what contingencies are built into the contract your signing so you know your timeline, if you want to add any, or if you want to waive any. If you have any questions, please don’t hesitate to contact me!

State College PA Home for Sale


Charming 2-story located in State College, PA Borough

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$255,900
Single Family Home
Main Features
3 Bedrooms
1 Bathroom
1 Partial Bathroom
Interior: 1,872 sqft
Lot: 0.17 acre(s)
Location
826 W. Beaver Avenue
State College, PA 16801
USA
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Helpful Tips For Buying A Home After College

For young adults just out of school, buying a home is a great opportunity to build wealth and to build your credit. With your initial salary, it may be tough to afford a mortgage and with minimal savings, it could be tough to get approved for a loan. Here are some helpful tips to make it happen…

Getting Approved For A Loan

  • Save During College: If you are still in college, get a job and start putting money away. Even a couple thousand dollars may be the difference between getting approved and not getting approved.
  • Get A Partner: Purchasing your first house with a good friend is a smart idea. By splitting ownership, the hefty down payment could be more affordable.
  • Get A Private Loan: If you think the property could be a good investment, consider presenting your case to a family member for a private loan to help with the down payment. You may be able to convince your relative to not charge interest but instead receive a part of any gains made on the house on the back-end.


Affording The Monthly Payments
After you have been approved for a loan, your next step is budgeting to pay your monthly payments. Unfortunately, in most cases, your monthly payment will also include taxes and insurance which seems to make many properties transition from affordable to un-affordable. Here are some ways to make the payment less painful.

  • Interest Only: Depending on the rates and the environment, it may make sense for you to do an interest-only loan. This can help keep the payment down. This should only be  your option if you are sure you will not be in the property longer than a few years.
  • Find Renters: Make sure your friends have secure jobs and will be able to pay you each month. Avoid freeloaders. Also, consider drafting basic lease agreements to protect yourself.


Position Yourself For The Future
Eliminating debt and putting money away are the basics of positioning yourself. Owning a home at a young age may be an opportunity to continue this process. While your home is unlikely to double in value and you probably won’t pay off much of the interest, you will be investing in an asset and building your credit at the same time. Furthermore, you can take advantage of the tax breaks that home ownership brings.

Being a homeowner for the first time is a great learning experience. You are forced to learn to take care of something and take pride in something you own. You will learn the process of getting a loan and closing a large transaction. It is a great value and learning experience.

For more information check out the original article here.

Susan Rupert Group

Realtor, ABR, CRS, SRES, MCNE, e-PRO
Kissinger Bigatel & Brower

2300 South Atherton Street
State College, PA 16801
Mobile/Direct: 814-280-0364
Office: 814-234-4000 ext. 3213
Email: Susan@StateCollegePARealEstate.com

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