[retiredguy123]

Originally Posted by La lamy

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?

That would usually be a breach of the contract. The seller can refuse to return the deposit and even sue the buyer. But, sometimes, it doesn't happen that way. Some listing contracts specify that the listing broker is entitled to half of an unreturned deposit, so the broker has some rights regarding whether the deposit is returned. Some brokers do not want bad publicity, so they will return the deposit, even though they are not legally required to do so.

[skippy05]

You need to hire yourself a buyer's agent because there are lots more questions than this to ask and very expensive mistakes to be made if you don't.

[mkjelenbaas]

Originally Posted by kp11364

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!

Tell us what your sales person said to this situation.

[Dlbonivich]

Have a realtor submit a contract for consideration, if accepted or negotiated, you have 3 days to pay to the selected title company an earnest money deposit. Then you have an inspection period ( which time frame is negotiable) to complete all due diligence. Inspections, reading deed restrictions investigation of CDD bond, insurance etc. your agent should assist with all of this. If you are financing, you will need to officially apply, not a pre approval or provide proof of funds. Plan on 30 days from signed contract to close. Good luck. Obviously I am a realtor. Andrea Bonivich Worth Clark Realty

[Dlbonivich]

Yes, inspection does not just mean physical inspection, it can be deed restrictions or something else

[Peachbelle]

Originally Posted by Inspector Mark

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.

If an inspection comes back not to your liking, you must write into the contract you want your EMD back. Otherwise all the homeowner must do is satisfy the home inspection problems. You cannot get out of the contract unless you add it in writing!

[jimmy o]

The buyer could always ask. But the seller had taken the house off the market once that offer was accepted and now lost any potential buyers during that time. In other words it cost the seller valuable listing time, and prep work for their own move. Buyer should not expect a refund because of cold feet.

[Topspinmo]

Originally Posted by Peachbelle

If an inspection comes back not to your liking, you must write into the contract you want your EMD back. Otherwise all the homeowner must do is satisfy the home inspection problems. You cannot get out of the contract unless you add it in writing!

When I sell house and jump through all hoops IMO the earnest money for all inconveniences specifically the last week when I’ve packing up spending money and then they pull out last day.

Though it’s never happened to me. But, in opinion that’s so I don’t take big loss plus chance or another buyer going elsewhere. Most item found on inspections are cosmetic and can easily be negotiated. If somebody has buyers remorse then they lose 5 or more grand. 5 grand would be minimum for me to consider sellers offer.

[Topspinmo]

Originally Posted by Peachbelle

If an inspection comes back not to your liking, you must write into the contract you want your EMD back. Otherwise all the homeowner must do is satisfy the home inspection problems. You cannot get out of the contract unless you add it in writing!

Good luck with that. IMO most sellers will say “see Ya”

[Glewellen]

Great advice. First, do your own inspection. You can decide what to ask for? Then if you want to proceed you might hire an inspection firm. Watch the inspectors contract - some will want to sign a clause that says inspector isn't responsible for any lousy advice they give you.

[Laker14]

Originally Posted by kp11364

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!

Is this an MLS listing or a VLS listing? How I'd go about it would be different depending upon which.

[Laker14]

When we bought our house it was listed via MLS. I had an MLS agent representing me, responsible for MY interests, not the seller's.

Our purchase offer was contingent upon an inspection, and there was a dollar amount set, I think it was $1500. If upon inspection the cost of needed repairs was less than that, seller was obligated to repair, and we were obligated to buy. "Cosmetic" issues were not included in the inspection contingency. The inspector found a few things (missed a few things as well), seller made and paid for repairs, and sale went through.

If the cost of repairs was going to be more than $1500, seller had the right to back out.

The question has been asked, what if the buyer just got cold feet and wanted out, not based on any inspection finding, just got scared. That gets dicey. I have seen that go different ways. A lot depends upon who holds the money, and who wants to be held up with a potential law suit. The parties can agree on some sort of restitution for the inconvenience to the seller, or absent that, someone can get sued. Of course, who will win depends largely upon the language of the contract, and that is why, unless you are very savvy yourself, you should have a professional helping you.

[Juliebythesea]

Get a Realtor, not a Villages sales agent

[margaretmattson]

I understand your thread is specifically about contracts. But, your question "What happens first?" caught my eye. IMO, first you should investigate the neighborhood and surroundings. You do not want to end up with a home that has outside issues. Drive around the neighborhood, listen for noise, pay attention to the traffic, talk to the neighbors and ask if there are many rentals, visit the recreation areas to see how crowded, and any other issues you feel are important. Investigate several times at different times of the day. I was forced to move because of renters. Others move because of traffic, noisy neighborhood, incessant dog barking, etc.

It costs a lot of money to move if you find the neighborhood and surroundings are not what you anticipated. Realtor fees to sell alone can be $25,000+. Do not make an expensive mistake. Remember: Your agent's primary focus is receiving a commission. YOU are the one who will have to put up with the problems after moving in. DO YOUR RESEARCH

[dougjb]

For perhaps the biggest purchase of your life that will involve a great deal of your money, why on earth would you want to rely upon the word of non professionals opining on TOTV. I am sure these people are well meaning but they are not lawyers and most are not realtors.

Ultimately, you will be signing a contract, one that will bind you to pay certains sums, perhaps based on some eventualities. Not ever real estate contract is the same.

For my money, I would spend a few hundred dollars on a lawyer, not a real estate agent or realtor. The lawyer can write a contract that specifies your requirements, not the general requirements contained in boilerplate contracts.

Personally, I have, as a seller, never accepted a contract that contained contingenicies such as a financing contingency or that would force me to make any repairs on the property. I allow a healthy period of time for the buyer to inspect the property and then the buyer can either take the property as is without any change in the sales price or walk from the transaction with his deposit check. A realtor would never let me do that....not because it is in my best interest...but because it is in the interest of the realtor to make the sale and earn his commission. I find most realtors to be swarmy and not worthy of ethical respect. On the other hand, when I tell a lawyer what I want in a contract, he or she makes it so.

As a buyer, there are many steps in the process. Make no mistake, this is a big purchase. It involves a large sum of money. I want a lawyer on my side and that can be bought for a few hundred dollars. Trust a realtor at your own risk!