What Is A Contract?
HI Pros,
I am a newbie and have been snooping around for deals. I called some banks and got a lead on a property on foreclosure and they told me that I would need to go to their realtor.
When I called the realtor she told me that the property had a contract initally and then it fell through and now some one else has a contract on it.
My question is what is a contract and how can it fall through???
She asked me to call her back about more foreclosure and my question is if I see something I like what are the steps I need to do to buy the property and does it involve the above contract (???). Also will their be any closing costs i have to be prepared for?
thanks a lot
VJ
HI Pros,
I am a newbie and have been snooping around for deals. I called some banks and got a lead on a property on foreclosure and they told me that I would need to go to their realtor.
When I called the realtor she told me that the property had a contract initally and then it fell through and now some one else has a contract on it.
My question is what is a contract and how can it fall through???
She asked me to call her back about more foreclosure and my question is if I see something I like what are the steps I need to do to buy the property and does it involve the above contract (???). Also will their be any closing costs i have to be prepared for?
thanks a lot
VJ
VJ,
A contract can fall thru for many reasons. Some have contingencies to be met that may not be met. If you don't have a contract, you don't have anything to fall back on if something goes haywire. You should always have a contract when purchasing RE. You do not have to go thru the banks REALTOR, you can choose to work with any REALTOR you wish. Pick an experienced REALTOR with complete knowledge of the market and a great rep. You will probably pay 1/2 the escrow fees. You can call any title company to get a buyer's estimated closing costs statement.
a contract is a binding agreement between two or more parties. They can "fall through" for any number of reasons: 1) inspections; 2) financing; 3) nonperformance (breach) by a party, etc.
honestly, i think you need to do a bit more learning before you start making offers right now. get a good understanding of the fundamentals before you go off and commit to doing a deal.
Thanks for the Gold and Jorge
As you all suggested i will use a realtor to make the offer. Also Gold please can you elaborate on the "how a good realtor ensure I pay 1/2 the escrow."
So if before i buy I property from a banks realtor I really need to set up a contract?
Does this invlove my putting some down payment or earnest money and would I loose this money if I dont close the contract?
thanks
VJ