Home Buyers need to speak the language of real estate. Yes, the real estate industry has a language all its own. Home buyers need to know and understand the terms. Not having the information or understanding of the terms can lead to costly errors.
Due Diligence - The time frame for this contingency is a negotiable condition between buyer and seller. In Georgia, this is typically between 10-14 days. During these days, the buyer has the right to have the home inspector in to evaluate the overall condition of the property and if necessary make requests that the seller correct any problems.
Mortgage Contingency - This will protect your earnest money if you should not qualify for the mortgage. Again, the amount of time for this is also negotiable between buyer and seller. In a seller's market (as it seems to be in most parts of the country) having the shortest time frame will make the buyers offer more attractive
Earnest Money - This is also often referred to as good faith money. The amount of earnest money generally is an amount that correlates to the purchase price of the property.
Binding Contract - This is that date that starts the clock ticking for the each of the contingencies.
Buyers need to be aware of these dates and make sure that proper notice is given at each step during the process.
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