No matter how much time you spend on researching and educating yourself about your home purchase, it’s hard to cover every detail. Here are a few tips for avoiding rookie mistakes with your first home purchase. Earnest money is a deposit you pay when you make an offer on a home—it’s a way to show the seller that you mean business. Usually you can’t get it back, but there are several circumstances that allow you to recover your earnest money.
With an appraisal contingency, you can recover your earnest money if the home is appraised for less than your offer. This gives you a better negotiating position—if the seller doesn’t agree to a lower price, you can get your earnest money back and walk away from the deal.
Major problems with the home:
It may be your dream home at the surface level, but an inspection could reveal major, major problems—such as issues with the foundation, or flood damage. In that case, you can get your money back if the seller doesn’t agree to a lower price.
The seller backs out:
Obviously, if the seller changes their mind about the transaction—maybe they decide not to sell, or accept a higher offer—you get your earnest money back.
Your house hasn’t sold:
Many buyers can’t afford a new home if they’re still financially responsible for their old one. In this case, you can work a sale contingency into the contract, and get your earnest money back if the home doesn’t sell soon enough.
Though there are some limits on financing contingencies, you can get your money back if you’re unable to get a loan.
An evacuation plan is a necessity for every home, especially if you li
"Nick Wall was amazing in helping us sell our condo in Mira Mesa and buy a home in Rancho Bernardo. Very knowledgeable of of the processes and was able to get us exactly what we wanted. Nick negotiated a lease back for us, which gave us more than enough time to find the home we love without having to rush after selling our condo. Nick was transparent throughout the entire process and was patient in answering our many questions. He was also sensitive to our current situation (infant child with 2 working parents) and took that into consideration when negotiating or scheduling things. He even offered to help us with moving-related tasks after we closed escrow (meeting trade workers at the home during working hours, small maintenance jobs, etc.). I highly recommend Nick and will be referring him to anyone I know who's looking to buy, sell or just needing to have a conversation with a real estate professional!"