I'm about to sign a purchase agreement any advise or tips???

Question

I am in the process of buying my first residential property. It will be our primary residence but I tried my very best to analyze it as a rental to consider it an investment property 100%. With that said, is there anything I should know or add to purchase agreement? My realtor stated that once offer is accepted we can't retract ourselves unless something goes wrong during the appraisal. Is that correct?

James Wise · Answer

Many times if the appraiser believes the property to be worth the purchase price or more than the purchase price the appraisal comes in at the purchase price.

Sonia Roberts · Answer

Not knowing Arizona rules but in Texas we have an option period that for a nominal amount-given to the owner-gives the Buyer the right to terminate in x amount of days for any reason what so ever.  This time gives us a chance to have inspections and work out any additional agreement should the inspection bring up some unknowns, or walk away.  I am curious how other states handle that inspection or an option period.

Also, the appraisal is usually addressed in the financing pages.  however if you do put down a substantial down payment the lender may not be effected so they will not question it-so stating that the property must appraise for at least sales price does make sense

So good luck to you since buying a home is a big investment and you need to make sure you are comfortable with the process.

Wayne Brooks · Answer

@Gabriela Gomez Do you have an inspection contingency that will let you cancel the contract?

If you've made an offer, why would you be worried about the ability to back out?

As a seller, I'd be hesitant to sign a contract that says you can back out if the appraisal isn't say 10% greater than the purchase price.  Do you want it for your price, or not?

Gabriela Gomez · Answer

Thanks Curt. I'll ask my realtor to add that.

Curt Davis · Answer

Well, if your looking at it from a rental standpoint you could put in the contract that you can cancel the contract if for example the appraisal has to come in at X more then the purchase price.   Just a thought.