What happens first?
 

Hi all,

I've got a general question about purchasing a resale home in TV.

So you visit a home and want to proceed. Do you need to put down the "earnest money" first, THEN engage a home inspector? Is the "earnest money" returned if the inspection fails?

I know that if the sale goes ahead, the earnest money is applied to the sale price.

Thanks!

In your purchase agreement you need to have an inspection contingency period. Usually 5 to 10 days.

You would both sign the agreement and the buyer would need to put down their EMD.

Then you schedule your home inspection within the contingency period. If the results of the inspection are unsatisfactory to you, you can get out of the purchase agreement and you get your EMD back.

You officially make an offer sign, and give a check to your agent, then it is submitted to the seller, if seller says no check comes back to you, if they counter you can choose to proceed check goes to escrow account, or you don’t have to counter and check is returned to you.

If owner is selling on their own you should seek advice from a title company or your bank

First, you make a written offer and include the earnest money as a check to the real estate agent. Personally, in this market, I would make an offer that is lower than the asking price. Always remember that the agent is working for the seller, so do not reveal any information that you don't want the seller to know. You negotiate a final sales price and sign a sales contract that includes an inspection contingency. Then, you hire an inspector who will provide you with a report that will include defects that you should ask the seller to fix. The sales contract will describe your options and the seller's options for dealing with the defects and whether you will proceed with the sales contract. As long as you don't violate any provisions of the contract, you will get back all of your earnest money if the sale does not go through. Good luck.

If you would like to buy the house, you instruct your agent to make an offer. Only once the offer is accepted do all the other wheels start turning. Both you and the seller agree on a closing date & the inspection is made during that time before the closing. Hopefully, the inspection is made fairly soon, as this will give the sellers time to fix any items found in the inspection. You may decide to re-inspect, or you may take the receipts of repairs as proof & proceed to the closing. It's up to you. If however, the inspection turns up something you would rather not live with, then you can back out of the deal, providing a fail inspection clause was written into the offer.

Not necessarily. You may not be able to get out of the contract, depending on the wording of the inspection contingency. Typically, the seller has the option to correct the defects, and, if so, you are bound by your offer.

Try to make sure your deposit is refundable if your contingencies are not met. Nonrefundable deposits are just that, not refundable, can have their uses under certain conditions and may become necessary in the acquisition of residential properties during sellers' markets. One can also split a deposit into refundable and nonrefundable portions. It is all part of negotiations. Asking a seller to take a home under contract off the market during a buyer's due diligence period might be a reason to provide a nonrefundable deposit. If the seller can continue to show the property for back up offers, maybe not. A good buyer's agent can help as they are up on current market conditions. Be aware the listing agent usually works for the seller although many agents try to be transactional agents or even try to obtain non-agent status to limit their liability.

Here is the Florida statute governing the various types of possible real estate brokerage representations and non-representations.
Chapter 475 Section 278 - 2023 Florida Statutes

I would just take issue with your reference to "your agent". Typically, a buyer does not have an agent, and the agent that is showing houses is representing the seller. A buyer should never tell the agent how much they are willing to pay for a house during negotiations.

A non-refundable deposit can be a seller's nightmare. I learned this the "almost" hard way. I say almost because we caved and just gave the guy back his money. Why? Because the potential buyer's lawyer said he'd tie the deposit - AND the sale of our home - up in court. We couldn't afford that, our own funds were running out, which was why we put the house up for sale in the first place. We would've been homeless and in massive debt if we had to /not/ sell our house for 6 months or longer just because some idiot decided to back out after making an offer that was accepted.

I agree with this post. When looking at the home, if you notice something not right, place it as a contingency in your contract. Roof looks weathered? Leaks? Unexplained patches in walls? Appliances making funny noises? Add whatever you notice as a contingency for inspection. Sometimes, the seller will agree with your purchase price and contingencies. Some may try to accept your offer but want to negotiate your contingencies. If they play hard ball with noticeable expensive repairs, move on! Not worth the trouble. It is best to place your deposit in escrow. You will have no problem getting your money back if the sale does not go through. As long as you do not violate any provisions of the contract. This last line is important.

Find a good realtor that represents you as a buyer. He/She will be able to work out this and other important details on the purchase.

Out of curiosity, can the buyer's deposit need to be returned if the inspection didn't show any issues, but the buyer just wanted to back out?

is it reasonable to find a reputable inspector in 5-10 days?
I may be going through this very soon.
How do you find one not associated with sellers realtor?

If this is a first time buying experience please engage either a lawyer or a real estate agent, not a village sales person

The buyer’s real estate agent handles those details. You do have a one, right?