When making large purchases there are many fears that can creep up and make it so a buyer can become to paralyzed..... to well buy. We've all had those thoughts " Am I over paying", " Will a newer better on come out next week", " What if it doesn't work" and so on. Depending on the type of item there are laws set up to help protect the consumer.
For cars there are lemon laws. Many companies allow up to 30 days to return an item. Infomercial products love to offer a money back guarantee.Even P90X: The 90-Day Extreme Home Fitness Workout DVD Program has a 90 day money back guarantee. (At the time of this writing. Check with Beachbody.com to see if it's still there)
Houses however do not have such time frames and test periods. So it can be very nerve racking. Well unless you rent a house or rent to own a house. You then have deep insider knowledge of that home and whether or not you'd like to own it.
The best options when it comes time to purchase a house is to make sure you have an fully utilize the inspection period or the option period. There is a difference between the two. The most notable is that there is generally an option fee for the option period. That can range from $10 a day to how ever much a seller wants. One way to think about it is this, you are buying the right to walk away from a house you don't want and a contract. If not there could be other fee and a mess. More often than not there won't be a mess because well messes are not fun for any who is not a lawyer.
If you're use to international markets or the stock market, the option fee works in a very similar way you put down a fee for the right to walk away if you do not like the product after a predetermined set of time. In legal transactions ( like buying a house) you need to set up expectations of who is to do what, when and what it will cost. An element with in real estate contracts include a time period of when the seller must be notified in the buyer wants out, the terms of what allows the buyer out of performing on the contract and so forth. The option fee allows the buyer to walk away with out any explanation. It's the get out performing fee. Or if your from IL or NJ a campaign donation.
A mediocre to great Realtor will also remind you, explain to you all but physically fore you to get a home inspection done. This would be that time period in which you send in an unbiased, licensed professional to go in an test the house out and look over it with a fine toothed comb. The home inspector will produce a report that pretty much tells you that the house is out of code, falling apart and is a liability waiting to liable.
Don't worry that is just their job. They are the real estate industry's bogey men. They are just doing their jobs. They are suppose to let you know all they can about the house. In the near to distant future I will discuss in great detail the home inspection, their report, what to do and not to do about it.
The home inspection, the inspector and your Realtor will be able to look at the report and tell you what your concerns should really be. If work needs to be done on the property before it closes and so forth. The report may indicate the need for another professional to come out and inspect or bid on the work to be done. An example would be foundation and pest control. Those are two items a current home owner may not be aware of. If you want to you can have your Realtor inform the other Realtor. FYI don't send the inspection report to the seller or the seller's Realtor. Only send it if it's requested.
There is a lot that can and will happen during an option period. The home inspection is just one element to it. If at any time during the option period you want to exit the deal you may. I would recommend that prior to you leaving the transaction have an open and honest conversation with your Realtor. Their skills and knowledge should be able to help you over come most obstacles and fears you have. Unless they're also representing the seller. Then don't be so open and honest just be direct.
Sincerely
Joe Nickels
Realtor, Lifestyles Realty, INC
Sincerely
Joe Nickels
Realtor, Lifestyles Realty, INC
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