Mistakes Buyers Make in Their Offer
Avoid these common mistakes
It happens fast. You see a property and want to make an offer to 'seal the deal.' The broker prepares a brief written preprinted offer, a single page or two, and submits it with your signature. You can be legally bound by this agreement, so take a minute to think it through!
Here are three common mistakes that you can avoid in the rush to submit an offer.
Mistake #1: Choosing a Friday or the last day of the month for your closing.
These are the busiest real estate days of the month. Not every deed gets recorded on a very busy closing day; not every mortgage lender can deliver closing documents in time for a morning or early-afternoon closing.
And if they can’t? The seller may not let you move in until the deed is recorded –even if that occurs days later.
Mistake #2 - Using the broker's pre-printed inspection clause.
You’re expecting that if you don’t like the results of a home inspection you can cancel your purchase. But the preprinted “standard” clause only lets you cancel if you find “serious structural or mechanical defects.”
What can you do? Get rid of the “standard” clause, cross it out, burn it! Replace it with simply “an inspection that is satisfactory to you.”
Mistake #3 - Not Mentioning the Appraised Value.
Every lender orders an appraisal to determine market value, and how much money the lender is willing to lend. Sometimes the appraisal comes in lower than the purchase price.
Can you cancel or renegotiate the price if the appraisal comes in low? Not unless you’ve included a cancellation right in your offer. Make your offer Conditional on the Appraisal being equal to or greater than the Purchase Price.
Disclaimer: The Massachusetts state bar does not certify any lawyer as a specialist or expert in real estate. As used in this website, where any reference to real estate lawyer or attorney means that the law firm has a heavy emphasis in real estate law and transactions in its practice.
Avoid these mistakes and more
Let us help you plan the details of your purchase.
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George Warshaw & Associates
We are a law firm licensed in Massachusetts. We represent buyers and sellers of homes and condominiums, prepare wills and trusts, and provide common sense advice and planning among other services for individuals, families and businesses.
This information is the express opinion of George Warshaw and does not constitute legal advice, nor substitute for consultation with your own legal professional.