{"id":1998,"date":"2023-09-05T21:13:23","date_gmt":"2023-09-05T21:13:23","guid":{"rendered":"https:\/\/mymortgagepros.com\/?p=1998"},"modified":"2024-02-08T05:45:46","modified_gmt":"2024-02-08T05:45:46","slug":"realtor-provide-great-advice-when-selling-or-buying-a-home","status":"publish","type":"post","link":"https:\/\/mymortgagepros.com\/realtor-provide-great-advice-when-selling-or-buying-a-home\/","title":{"rendered":"Realtor provide great advice when selling or buying a home!"},"content":{"rendered":"\r\n
When it comes to purchasing a home, most offers include \u201cconditions\u201d (or \u201csubjects\u201d if you are in the provinces of British Columbia or Manitoba), which are requirements or criteria to be met before the sale can be finalized and the property is transferred.<\/p>\r\n\r\n\r\n\r\n
Conditions commonly used:<\/p>\r\n\r\n\r\n\r\n
The purpose of these conditions is to protect the buyer from making a poor investment and ensure that there are no hidden surprises when it comes to financing, insurance, or the state of the property.<\/p>\r\n\r\n\r\n\r\n
These conditions are written up in the purchase offer with a date of removal. This is agreed to by the seller before the sale is finalized. Assuming the conditions are lifted by the date of removal, the sale can go through. If the conditions are not lifted (perhaps financing falls through or something is revealed during the home inspection), the buyer can waive the offer and the purchase becomes void.
In some cases, homebuyers choose to approach an offer without conditions.\u00a0 Below we have outlined the impact of what this means for buyers and sellers to help you better understand the risks and outcomes:<\/p>\r\n\r\n\r\n\r\n
Due Diligence:<\/strong> With condition-free offers, there is no opportunity for due diligence after the offer has been made. This requires the buyer to do all their research before their initial bid. Because it is firm and binding, a buyer who decides to back out will likely be met with serious legal ramifications. Submitting an offer without conditions is not due diligence and it is at the buyer\u2019s behest.<\/p>\r\n\r\n\r\n\r\n When submitting a condition-free offer, it is essentially up to the buyer to do as much due diligence as possible before submitting. They will need to identify what the lender is looking for to make sure they walk away with a mortgage. Though approval is never certain, prospective buyers placing a condition-free offer should do their very best to secure financing beforehand.<\/p>\r\n\r\n\r\n\r\n Contractual Obligations<\/u><\/strong><\/p>\r\n\r\n\r\n\r\n Be mindful when it comes to purchasing offers versus purchase agreements. While your purchase offer is a written proposal to purchase, the purchase agreement is a full contract between the buyer and seller. The purchase offer acts as a letter of intent, setting the terms you propose to buy the home. If financing falls through, for example, then the contract is breached and this is where the buyer may lose the deposit.<\/p>\r\n\r\n\r\n\r\n It is also important to be aware of a breach of contract in the event that a seller chooses to take action. For example, if you submit a condition-free offer of $500,000 and cannot secure financing for that offer and the seller turns around and is only able to get a $400,000 deal with another buyer, they could potentially sue the initial buyer for the difference due to breach of contract.<\/p>\r\n\r\n\r\n\r\n Preparing a Condition-Free Offer<\/u><\/strong><\/p>\r\n\r\n\r\n\r\n If you have decided to go ahead with a condition-free offer, regardless of the risks, there are some things you can do to mitigate potential issues, including:<\/strong><\/p>\r\n\r\n\r\n\r\n While there are things that can be done to help with condition-free offers, it is still risky. Ultimately submitting an offer with conditions gives you the time and ability to gather information on the above, as well as access to the property or home for inspections.<\/p>\r\n\r\n\r\n\r\n If you are intent on submitting a condition-free offer, be sure to discuss it with your real estate agent<\/a><\/strong> as they can determine if a condition-free offer is necessary, or if perhaps a short closing window would suffice to seal the deal. A good realtor will keep you informed of potential interest and other bids during the process as well. Their goal should be to maximize your opportunity and minimize your risk. In addition, before making any offers, be sure to contact me to discuss your mortgage and financing so you can make the best decision.<\/p>\r\n","protected":false},"excerpt":{"rendered":" When it comes to purchasing a home, most offers include \u201cconditions\u201d (or \u201csubjects\u201d if you are in the provinces of British Columbia or Manitoba), which are requirements or criteria to be met before the sale … Read More<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[186,1],"tags":[],"yoast_head":"\n\r\n
Financing Around Condition-free Offers<\/u><\/strong><\/h5>\r\n\r\n\r\n\r\n
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