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What Are Contingencies in Real Estate?

what are contingencies in real estate - buy a home for sale in Port Aransas TX
Contingencies are part of many real estate transactions, and chances are pretty good that you’ve heard the term before.
But what are contingencies, and what do you do if they’re included in your real estate purchase contract?

What Are Contingencies?

Contingencies are conditions that must be met in order for you and the other party (or parties) to execute the real estate purchase contract. The final sale is contingent upon one or more parties to the transaction meeting certain criteria.
Typically, contingencies in a real estate purchase contract fall into at least one of three categories: appraisal, home inspection, or mortgage approval.

Appraisal Contingencies

Most lenders require you to have a home appraised before they’ll lend you the money to buy it. When there’s an appraisal contingency in your contract, you can get out of buying the home if the appraisal comes back lower than what you intend to pay for the home.

Home Inspection Contingencies

You have the right to have a home you intend to buy inspected by a professional home inspector. If the inspector finds something wrong with the home, you can ask the seller to fix it or you can back out of the deal, no harm done.

Mortgage Contingencies

A mortgage contingency protects you and the seller from entering into a contract when you don’t have the money to purchase the home. (That’s another reason that it’s a good idea to get a mortgage preapproval before you even begin house-shopping.)

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

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Filed under: Blog, Buying by Julie Woodward
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What is a Real Estate Purchase Contract?

What is a Real Estate Purchase Contract - Port Aransas Homes for Sale
When you buy a home, it all starts with a real estate purchase contract.
But what is this document, and what does it include?

What is a Real Estate Purchase Contract?

A real estate purchase contract is a legally binding, bilateral agreement between two or more parties. If you sign one, you’re saying that you have the legal capacity to make the purchase, exchange, or conveyance of “real property.” The term real property in this sense refers to land, a home, and buildings or other fixtures that you intend to buy.

What’s in a Real Estate Purchase Contract?

Your real estate purchase contract should contain:

  • Identification of everyone involved in the transaction
  • A description of the property
  • The agreed-upon purchase price
  • Details, rights, and obligations of the contract
  • Contingencies (conditions) that must be met before you can execute the contract
  • A description of the property’s condition
  • A list of what’s included with the property—and what’s not
  • How much money you’ll put down as a deposit
  • Who pays closing costs
  • How much the closing costs will be
  • A projected closing date
  • Each party’s signature

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

Filed under: Blog, Buying by Julie Woodward
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What Happens at Closing?

What Happens at Closing When You Buy a Home in Port Aransas, TX?
When you’re looking at Port Aransas homes for sale, the final step—closing—is never far from your mind. That’s the big day; the day you’ll get the keys to your next home.
But what, exactly, happens at closing?
Your Realtor® will be there with you, and so will a handful of other people.
Here’s the breakdown of what happens.

What Happens at Closing?

The day you sign the final paperwork that outlines your ownership of the home you’re buying is called closing day. You’ll sit at the closing table (it’s really just a table where we close real estate transactions) and sign your name to dozens of documents.
There will be plenty of documents for you to sign, too. You’ll have financial documents, disclosures, title agreements… you name it, and you’re signing it on closing day.

What Happens After You Sign All the Papers?

After you sign all the paperwork your Realtor puts in front of you, those documents need to go to your lender. Typically, whomever is in charge on closing day will handle faxing or scanning these documents to your lender (and the seller’s lender, if there is one).
In many cases, your signature is required on all these documents before your lender will actually fund the loan and give the seller his or her money. In some cases, the funds are already waiting and the lender just needs a final confirmation that everything went through according to plan.
After everyone has all the documentation they need, your loan is funded… and you’re a homeowner.

Are You Buying a Home or Condo in Port Aransas?

Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
In the meantime, you might find these links helpful:

 
 

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Let's Talk About Earnest Money (and Option Fees and Periods)

Earnest Money Deposits and Option Fee and Period - Port Aransas TX Real Estate
If you’re like most Texas homebuyers, you’ve probably heard the terms earnest money deposit and option fees and periods since you made the decision to buy a home. You may be wondering what the differences are… and if you’ll need to pay one or both.

Earnest Money Deposits

When you find your dream home, you need to act quickly. You’ll have to let the seller know you’re serious about completing the purchase.
That’s what an earnest money deposit is for. The earnest money deposit is a negotiable amount of money that comes with a set of conditions (also negotiable) that protect the buyer and seller.

Why Does Earnest Money Make a Difference?

When you sign a purchase contract, you’re asking the seller to take the home off the market and hold it for you. That makes it unavailable to other buyers.
Your earnest money deposit is still, in most cases, your money; it goes into an escrow account until the deal is closed. Usually, the money is put toward your down payment.

What is an Option Fee and Period?

After making an offer and negotiating the terms and conditions of the earnest money deposit, you may want to take advantage of the option fee and period. This fee is separate from the earnest money deposit, and it can be a smart investment for homebuyers.
The option period lets you change your mind, with no questions asked, by paying a small fee. It also gives you a little extra time (usually 10 days or less) to complete all the necessary inspections.
Buyer’s remorse? Sometimes the option fee and period can get you out of a mistake. You don’t have to specify a reason for backing out of a real estate transaction, but remember, there are very strictly enforced timelines you’ll need to follow if you take this route.

Are You Buying a Home or Condo in Port Aransas?

Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
In the meantime, you might find these links helpful:

 

Filed under: Blog, Buying, Financing by Julie Woodward
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5 Things You MUST Check Before Buying a House in Port Aransas

5 things to check before you buy a house in port aransas - north padre island homes for sale
If you’re buying a new home in Port Aransas or North Padre Island, it’s exciting… but don’t become so excited that you overlook these five important must-check items.

5 Things You Must Check Before Buying a House in Port Aransas

You’ll save yourself time, money, and stress if you check on everything possible before you sign that dotted line.

#1: How Are the Windows?

New windows can be extremely expensive (sometimes costing more than $10,000), so it’s a good idea to pay special attention to whether they close properly, drafts come in, or they’re cracked. Check double-paned windows for signs of condensation, too, which indicates that there’s a crack in them.

#2: Are There Pests?

Open the cupboards, look behind the refrigerator, and peek under the sink. If you see any signs of pests, you’ll probably need to budget for a pest-control plan—but remember that some pests, such as termites, can damage a home’s entire structure.

#3: Where Does the Water Flow?

We get our fair share of rain in Port Aransas and North Padre Island, so you’ll want to make sure that water flows away from the house. Even if the home is at the top of a hill, you’ll need to ensure that water flows in a way that won’t cause erosion on the property.

#4: What Are the Neighbors Like?

How do you know if a neighborhood is right for you? You check on it at various times of day, get to know some of the people who live there, and look at the environment. The last thing you want is to buy a home in a subdivision or community where you don’t feel at-home.

#5: Will You Need to Upgrade the House?

Upgrades take more money—and more time—than most people think. If a house is too dated, you might be in for a wild (and expensive) ride. Know what you’re signing up for before you fall in love with any house!

Are You Buying a Home in Port Aransas?

Whether you’re looking for a home for sale in Port Aransas or North Padre Island, we’d love to help you find the perfect place to live.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll start searching right away.
In the meantime, check out our:

 

 

Filed under: Blog, Buying by Julie Woodward
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