OfflineI always recommend you read the contracts you are signing, especially when the contracts are being supplied by someone else. If you are brand new to real estate, I recommend working with a real estate agent. They are training in the state approved contract and can walk you through that. If they do not know the answer to something, ask them to find out from their broker or someone on the realtor board. It is part of their job when they are representing you.
If you are purchasing a property not through the MLS, so there is not realtor involved, again get assistance with the contract. If you have your own contract that's been approved by your real estate attorney you are good to go. However, there are always those occasions when the other party wants to use a specific contract. ALWAYS READ THE FINE PRINT. Make sure you understand the entire document dates and fees prior to signing. Get help if you are uncertain.
The reason I bring the up as we've purchased a couple REO's recently and I didn't read the fine print on the first one. I've done many REO deals over the years and have seen their addendums many times. However, in these instances they updated the addendums stating that we must pay "all" the closing costs, where in the past we split them as that was common place. I made less money that expected as there were additional closing fees that I didn't plan for. I was smarter the second time around and wrote in for my buyer to pay all the closing costs to help myself out.
The big picture is to always make sure you know what you're signing. Know all the terms and fees of each individual contract. If you don't know get help.
Best of Success,
Andrea
Chip & Andrea Weule
AC Investment Group, Inc.
Great advice Andrea! There can be little hidden verbiage that can make or break. A friend of mine just lost a deal because he found a pre- payment clause that would have been a 125k fee! of coarse this was a big commercial deal but it just goes to show you!
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Andrea makes some good points here. I've been burned (i.e. it cost me money in legal fees when my tenants took me to court) by using a contract I pulled off the internet. I know better now. I agree, if you aren't using the MLS contract, use a contract you have had a real estate attorney in your state provide or at least review. Another thing to know is that in some states, Washington among them, if you are not a licensed real estate agent, it's not appropriate (perhaps not illegal) to use the MLS contract. And all those bank and agency contracts - Fannie, Freddie, HUD, Bank of America - etc. Don't assume they are they same as when you read them last - even if that was a couple weeks ago. Terms change all the time! Know what you are signing.
Blessings & Favor,
Gena.
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guess things do always change, so we should always look over what we are signing.
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Things are always changing. We as individuals are always changing. I agree to read everything including the fine print and know what you are doing. Getting help from realtor or R E attorney is a must. Important to know that the realtor or attorney knows what they are talking about too as in how much experience they have. Thanks for making this post. It makes one stop and think about a lot of things.
We've all got our good success stories, but I felt it was appropriate to share a less fortunate success story. We all can learn from our mistakes and even better (and less costly) from others. These help us to get better at what we do, especially as we go into round two.
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Live or Learn, but never Lose.
Chip & Andrea Weule
AC Investment Group, Inc.
I think that most of us, especially after we've done a few deals, feel at ease with contracts, and that's when we let our guard down! This is the time when we need to follow your advice! We need to read the entire contract every time we do a deal, no exceptions!
Good reminder!
Valerie
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