My First Offer (real Estate Contract, Purchase Agreement And Contingencies)

I am currently looking to make an offer on a Multi Unit property. (2) units are rented. The other (3) are being renovated and the last Unit is for the Owner.



Although the price seems pretty fair, I think there will be unforeseen damages/repairs I might find after inspection that are not part of the current renovation. Taking this scenario into account I would like to include a contingency in my initial offer allowing me to: (1) renegotiate the asking price to cover my expenses to fix the property; or (2) states the seller, upon acknowledgment of damages, must repair the damages prior to receiving the original price as agreed upon.



I would like to know a few things. If the "real estate contract" is the initial offer, what is the purchase agreement? Also should I implement any contingencies I have with my initial offer or should I wait until the offer is accepted?



I feel a first offer with contingencies might deter the seller but I am trying to protect myself from purchasing a property that needs extensive repairs.



Any advice would be appreciated. Thank you.



*** I originally posted this in the newbie forum on residential property but I realize a 5+ unit is considered commercial so I am reposting it here. ***








[addsig]

Comments(8)

  • totreatrite10th September, 2005

    get a lawyer

  • InActive_Account11th September, 2005

    Hire a local realtor or broker.

  • sf_georgez24th August, 2005

    Do you like to check out Galveston, TX? The market there is getting hot now. It will be a good place to invest. IMHO.

  • Palmguy304th September, 2005

    buy somewhere that is close to where the hurricane came through, Anyware close with little to no damage!

  • InActive_Account5th September, 2005

    I agree with Palmguy30.

  • sf_georgez12th September, 2005

    I did some research recently. I thought Dallas and Houston, Texas will be hot. Florida is a little bit overwhelmed and the Katrina will have a negative impact on the real estate market.
    What do you guys think?

  • lp113th September, 2005

    low income housing will be booming near areas of the katrina devastation...who ever has money or had insurance will eventually go back and rebuilt...for the renters, they will be renters in a different area..for those without insurance, they will probably also become renters..what does all that mean for areas that took these people in...it means landlords with vacant properties will have an easier time filling up those vacancies and may drive up rent rates, supply and demand...

  • mn13th September, 2005

    Hi redseahorse,
    Since you live in AZ, do you know Laveen? Is a good city to live ?
    Thank you,

Add Comment

Login To Comment