The Chicago Tribune ran a story concerning a preceived uptick in cancelled home purchase contracts. One of the most confusing issues, and the major obstacle for home buyers to become "mentally" ready to offer on a home, is the subject of earnest money and the contract itself.
While most buyers today are concerned about getting a deal, they are skittish about writing purchase offers. How do you get a "deal" without writing an offer... you don't. Purchasers are afraid of losing their earnest money or that they are over-paying. As the story explains, a purchase offer has several contingencies before you buy a home. If you know how to apply these contingencies, addendums, amendments and earnest money appropriately to an offer for purchase, you may try to get that deal without obligating yourself to any financial committment should you not get your numbers.
Today, I'll show property to a new client. When I met her, she explained they lost out on a place already because they did not know they could offer and put up initial earnest money without actually "buying" the home right there. In her words, they "did not have their ducks in a row".
My philosophy in this market is; if we see a great place that seems a little overpriced or out of your range, let's put together a professional offer and take a swing. While negotiating that, you'll still be out looking at other property. Presented and negotiated properly, I may get the contract terms you're happy with without even turning over the initial earnest money check! Your attorney and I will explain each step and the committment involved so you may have the best negotiating position.
But the key is, no deal unless we write a purchase offer. Become a gun-slinger and no regrets.