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Put everything in writing. Written documentation is the best way to protect
yourself from any misunderstandings with the other party.
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Review the contract. Make sure your contract lists any specific personal
items from the seller such as a refrigerator or washer or washing machine.
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Inspection – Option provision.
Protect yourself by adding an option period to the contract where you can
get out of the contract if: (1) your inspection reveals major repairs, or
(2) you simply change your mind.
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Loan contingency provision.
Make sure that your offer is contingent upon a written loan approval given
within a specific timeframe.
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Be prepared to renegotiate.
If the inspection reveals problems or the appraisal on the home comes in
lower than the contract price, be prepared to renegotiate with the seller
about how the difference will be reconciled.
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Review the closing date. If moving into the house on the closing date is
vital, make sure this is clearly written into the contract.
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Use the right paperwork. Make sure your agent uses a state-provided contract
form, if available.
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Be willing to walk away. You should be willing to buy a different house during
the negotiation phase. As the
buyer, you'll be able walk away from the deal at any time if your offer
isn't accepted. This can be a
powerful tool that can sway the seller to agree to your offer.
