Dean Graziosi

When you purchase a home, chances are, things will go smoothly. While there are bound to be a few problems along the way, you want to minimize the chances of something going wrong as much as possible. The more you know about the contract you are entering into, the fewer problems you may have throughout the entire process. This is why it is a good idea to anticipate potential problems that could occur. This makes it much easier for you to cancel the contract without penalty should something go wrong. These are what are known as contingencies. You will want to include them whenever you make an offer on a home.

An example of a contingency would be as follows. Some buyers choose to purchase a home before selling the one they currently own. Sometimes, even if the home is sold, it is probably still pending and has not yet closed. This situation would call for a contingency where the sale of the home is required to be final before the actual purchase of the new one. This condition would then be written into the offer. Failing to do this could result in two mortgage payments for the buyer instead of one. This is an important part of the offer since no prospect buyer wants to pay for two mortgages at the same time.

There are other common contingencies that should be included when you make an offer. Since you will most likely need a mortgage in order to buy the new home, one condition of your offer could be that suitable financing is successfully obtained before anything is finalized. You also want to be sure the property appraises for the amount you are offering, so this is another condition you would definitely want to include. Also, during the escrow period, certain inspections will most likely be required by you. You could write in another contingency that all inspections must be passed before the sale will take place.

Contingencies are there for your protection. Should you find yourself unable to keep your promise to purchase a home. There are also circumstances that could occur that would make buying property impossible. These situations usually involve money, and since this is commonly the case, you want to be sure you can get out of your agreement without being out a lot of cash. This is an important part of any sale and you should definitely discuss it with your real estate agent.

Your realtor can discuss all types of contingencies with you and advise you on which ones should go into your contract. Your specific situation will be taken into account so as to find the best solution for you should it be needed. Chances are you won’t, but you always want to be prepared just in case.

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Some sellers may feel that the prospect of remodeling the kitchen in a home that they are about to list is unnecessary; but in many cases the kitchen is one room that many buyers base their decision on. By remodeling your existing kitchen you may be increasing the chances of your home selling quickly rather than sitting on the market for months. Remodeling your kitchen can also help your home stand out among all of the other choices available on the market today. Buyers will likely choose a home with a freshly designed kitchen over homes that feature kitchens that are in need of work.

If your home has been listed for months and there has been little interest in it, you may want to consider remodeling your kitchen. Buyers tend to be put off if a kitchen seems too dated or features appliances and cabinets that aren’t modern. Remodeling your kitchen doesn’t have to cost a lot, simply making a few changes such as paint or floors can be accomplished relative inexpensively. The larger remodeling costs come in when you decide to replace existing floors, cabinets and countertops. Depending on the styles you choose these upgrades can become costly.

If you do decide to make some changes to your existing kitchen it is best to make changes that will increase its appeal and not make it look like it was done quick and cheap. It is also best to when remodeling to increase your home desirability among buyers that you choose colors that are more neutral and not too loud. Simply making a few upgrades may be enough to change the entire look and feel of your kitchen. Paint color can be changed relatively easy and it isn’t one of the more expensive upgrades that can be done. Appliances, if you are including them in sale should also be upgraded. Buyers are more likely to purchase a home that features newer more modern appliances than a home that has dated and unappealing appliances. Buyers will see replacing all of the appliances as another out of pocket expense, this is likely to push them towards a home that features all new, modern appliances.

The real estate market is highly competitive today, and anything you can do to help your home stand apart from others listed is a great way to get your home sold quickly. The longer your home sits, the less likely it is going to sell for the asking price. Providing buyers with a remodeled kitchen is one way to ensure that your home sells for the price you’re asking. Remodeling may seem like an unnecessary expense, but it is well worth it when trying to sell your home.

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Selling a home is usually easier if you use a real estate agent to help you with the details and the deals. When you do use an agent, you will normally have to sign a listing contract or agreement to start the ball rolling. This may be the first paperwork you do regarding selling your home, so it makes sense to learn about it before you go to your first meeting with your agent.

Dates

The dates of the contract are very important. If you want to get started right away, you will want the start date to be set for the current date. Another thing to factor in when thinking about the dates on the contract is that you might not be satisfied with this real estate agent. You might not want an indefinite or very long-term contract, at least not at first. Do not accept any date you are given blindly, but have your say about how long you want to commit to the contract.

List Price

You and the realtor will determine the price you want to set for the property on the listing. This figure will be included in the contract as the listing price. This does not mean that you will be bound to sell the house at that price in every situation. It means that you have agreed on a price for the property for listing and marketing. It could also affect you if you back out on a deal.

Compensation for the Realtor

A section of the listing contract will outline the way the real estate agent will be paid. It will say whether the fee is a flat fee or a percentage of the total amount of the sale. Then, it will set out the amount for that fee, either in dollar amount or percent.

When the Seller Pays

The next part of the listing contract will define the terms and conditions relating to when the seller will pay the realtor. These may be complex. They may include provisions for what happens if you abandon the contract. There also may be a clause that compels the seller to pay the commission if the real estate agent has found a qualified and willing buyer who will pay the asking price, even if the seller reneges on the deal.

Working with Other Real Estate Agents

The listing contract may include details about how the real estate agent may cooperate with other real estate agents. If so, it will also spell out how those other realtors are to be compensated.

Responsibilities of Seller and Agent

The responsibilities of the seller and agent will be explained in the listing contract. The seller is generally required to tell the agent important information about the property. The agent is required to convey all the rules and regulations that apply to selling the home.

Signing a listing contract is a big step. There are many factors to consider and it is important to understand the paperwork in front of you. Make sure you understand all the parts of the contract before you sign on that dotted line.

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