It’s no secret that when we get excited over something it is easy to put blinders on, only focus on the positives, and go full speed ahead. Unfortunately, by doing this, especially in regard to real estate, you can miss some serious red flags and may put yourself into financial hardship, or worse, a home you don’t want.
The term “earnest money” is generally pretty commonly used within the real estate world and is one of the biggest “losses” you could face when placing an offer on a property too soon. While in some cases, you may tour your first property and know without a doubt you want to place an offer, in other cases, you may be jumping the gun and end up wanted to retract your offer later down the line as you start to see other properties or become aware of issues within the home you may not have noticed during your initial tour. By retracting your offer, you are at risk to lose your earnest money which is normally in the low thousands.
Related: 6 Red Flags When Buying a Home
It’s easy to fall in love with a property but pay little to no attention to issues that there may be. For example, it’s on the perfect sized lot with the small yard you’ve always dreamt of, so you jump the gun and put in an offer immediately. Unfortunately, while the home itself may be perfect, the neighborhood may be less than ideal. A great home can easily be ruined by a poor neighborhood, so it is always recommended to walk the neighborhood and do some research prior to placing your offer to help ensure that you are not purchasing a home that you will regret only a few weeks later.
When placing an offer, especially if you are sure that you want to purchase the home, you may choose to forego adding contingencies to your offer. While this does help give you a leg up in ensuring your offer is accepted, it doesn’t protect you from potential problems that may arise upon inspections, etc. and thus you could end up purchasing a home that is more than you bargained for. Contingencies within offers and there to help protect the buyer, so be sure to weigh the pros and cons of placing an offer with or without contingencies.
If you’re currently searching for a new home in the Palm Desert area, are in need of a seller’s agent, or have any questions regarding the current market, interest rates, or need assistance, please feel free to contact our office at any time.
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