There is no better feeling than buying your very own house for the first time. Of course, being first time homebuyers, there are a lot of things you may not know about purchasing a home. Your real estate agents can only give you so much guidance and advice. Some may not even guide you at all, and just want the deal to be over with.
As attorneys who focus primarily on real estate law, we see and hear about a lot of issues that arise from the purchase and sale of properties. We’ve seen it all; but fear not. We’ve come up with three things all first time homebuyers should be aware of when purchasing their first home.
1. Your contingencies are a big deal.
Contingencies in a real estate contract allow the buyer to back out of the transaction if the condition of the property or some event does not occur. The key is the buyer can back out without penalty as long as they do not remove their applicable contingency beforehand. Buyers need to understand the importance of their own contingencies and build them into the contract to protect themselves.
2. Loans take longer than you expect.
It used to be that 30 days was a pretty standard escrow. First time homebuyers should build more time into their purchase to allow for any unforeseen problems with their loan. It is hard to close escrow in less than 45-60 days with a conventional loan.
3. Do more than just basic inspections.
Most sales are “buyer beware” so it is important to do more than just have a simple home inspection. We recommend spending more on inspections to avoid huge financial problems later with undisclosed defects.
Having issues with the purchase or sale of property? Say, with a non-disclosure issue, or a seller backing out of escrow? The attorneys at Schorr Law are here to help. We have extensive experience dealing with these types of issues. Call us today, or send us a message to schedule a consult. Call: (310) 954-1877 | Text: (323) 487-7533 | Email: email@example.com or send us a message through our Contact Form.
See related: When Can a Seller Back Out of Escrow?