WHOSE to BLAME when a BUYER does NOT READ the Contract before signing?

The question of the day is WHO is to BLAME when the BUYER does NOT READ the purchase contract but signs it anyway? Some times finding a buyer is the easy part of Real Estate. Getting it to close is sometimes the real challenge.

As a leading Listing Agent of Bank Owned homes in the Manchester NH area, the one thing that I can tell you is that Listing and Selling Bank Owned Homes takes patience and experience to be good at it. When a buyer comes directly to me without having a Buyer agent i take the time to review the contracts with them BEFORE they sign. Buying a Bank owned home is unlike buying an owner occupied home. It contains some unique wording. It can be a very rewarding purchase for the buyer who understands the process because they were informed how it works.

On the other hand when a Buyer is represented by a Buyer broker, i explain the process to the agent and hope and pray they explain it to their buyer. However they buyer does not always get informed. The strangest concept to understand is that they sign these forms they have not read. One example is virtually all REO paperwork will ask the buyer to pay the entire state transfer tax amount despite what is traditional for your state. Here in NH it is traditional for the buyer and seller each to pay half of the transfer tax. The key is for the buyer to state this in their initial offer that each party pays half. If you do not ask and you do not check the appropriate box, the buyer will be paying the whole amount.

Everyone can learn by this short story by simply reading before you sign and making sure you understand the Bank Owned Buying process.

TOP 5 ITEMS YOU NEED TO KNOW IF BUYING A BANK OWNED HOME

1. GET PRE-QUAILIFIED: Before even looking at a home you should get pre-approved for a loan. No bank will look at your offer without it. Meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any mortgages that you may quailify for. You should then tell them you are looking at bank owned homes so they can provide you with a list of what condition the property needs to be in for you to be able to get a mortgage.

2. WHO IS REPRESENTING YOU? : You should know that the listing agent represents the seller. there are some advantages working directly with a listing agent if you feel comfortable with buying. If not you may want to hire a buyer broker who is WELL EXPERIENCED in bank owned home sales. In inexpereinced agent can hurt more than help. You can usually hire a buyer broker at no cost to you, they get paid their commission from the fee advertsised in MLS by the listing agent and paid at closing. This way they can get the information for you and you will have someone assisting you through each step of the buying process.

3. MAKING AN OFFER THE HOUSE: Before making your offer you should know that most houses are sold "AS IS". The banks will not re-negotiate after a home inspection or make any repairs. Your best chance to get the bank to make repairs or credit you for repairs is in your initial offer. You shoud inspect the property before you put in the offer. If you dont want to spend the money for some reason, then when looking at the home you are going to need to look at the well, septic, roof, siding, windows, heating system, look under the sinks, in the basement for signs of water or mold, stains on the ceilings and anything that sticks out or if you are getting an fha loan, any safety issues.

Before making an offer, you should assess what the house is worth in todays market and deduct for any repairs needed. Do not base your offer on a percentage off an asking price. You dont know if the bank priced the house higher than market value, already at market value or priced it way below market value.



4. THE OFFER: In your offer you should make sure you attach your pre-quailification letter, you should make sure you put a closing date of 30 days or less, make sure your deposit is at least 1% of the sales price and it is a cashiers check. Try and avoid any contingincies other than an inspection and mortgage contingincy. Do not put any expiration dates in for the bank answering the offer.

5. KNOW THE TIME LINES: You should know that each bank works differently than any other. The Listing agent has a great deal responsibility to assist the asset manager and move teh offer through the process of approval or counter offer. You can easily ask the listing agent what the average is for the bank. Banks can average 1-3 dasy to answer an offer. Most of my banks offer within 1 day and alot of times it is the same day. Allow 3-7 days from acceptance to get you the signed purchase and sales. The one thing you can do to speed up your own closing is to make sure the foreclsoure deed is complete and recorded, otherwise this could hold up your closing.

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale whcih may be able to help you.

Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees. WE GET RESULTS!!!
If you need to sell a home in New Hampshire I can be that agent for you. I strive to provide the best personal and professional service through each step of the selling process.

We stand by you through every step in selling your home.

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