Don’t Get Caught in a Trap-Pay Attention to Creative Real Estate Contract Clauses

Written by Posted On Monday, 31 May 2021 00:00

“One of these days, you are going to wish you paid more attention to me. Sincerely, Terms & Conditions”  someecards

Real estate sales are still running hot in May of 2021, pushing the national median home price to $372,400, up over 16%  from $310,100 a year ago.  Low inventory of homes for sale continues to cause buyers to compete with other buyers for the same house.  Buyers have to think fast and make their highest and best offer. The saying goes, “if you have to sleep on it, someone else will be sleeping in it.”

On one end of the see-saw, you see rising home prices. On the other end of the see-saw are low mortgage rates and high wages attempting to keep everything balanced. New homes hitting the market help maintain a balance between homes for sale vs. high demand from homebuyers.  

Watch out for rising mortgage rates, though.  Rising mortgage rates along with higher home prices could cause a correction in the rate of increasing home prices, even though prices are expected to continue to rise over the next year or two. 

Other costly mistakes to avoid on the home purchase contract:

1. Carson and Casey thought they knew the neighborhood and made a competitive offer to pay $10,000 over the appraised value. They thought the house would appraise for $175,000, but it appraised for $225,000.  Oops!  The unexpected higher price took Carson and Casey way past their budget, and they did not have enough money to close without pulling money from a retirement account. Expensive!

2. Stay clear of clauses like, “seller to pay a $10,000 decorator allowance to buyer at closing.”  Traditional mortgages prohibit the buyer from getting cashback from the seller in this manner.  There are other solutions to appease both parties without giving cashback to the buyer.

Real estate and mortgage professionals bring value to home buyers and home sellers when they can apply their knowledge to avoid costly traps to these customers.   When you save a customer from a bad experience, they reward you richly with referrals for years to come. 

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Jo Garner

“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals.”

As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want.  What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?

Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”

Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.

Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.  

Jo Garner has been in the real estate/financing business for over 25 years.  She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge

On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate.  In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 25 years.  Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.  

In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com  

www.JoGarner.com

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