Earnest Money Mistakes

When buying a home, earnest money is an essential factor to consider. What is earnest money? Earnest money is a deposit made by the buyer that shows good faith and indicates their commitment to completing the purchase. This deposit is held in trust until the final closing and is credited toward your down payment or closing costs.  

The amount of earnest money depends on the buyer’s situation and market conditions. Generally speaking, the higher the home’s purchase price, the larger the deposit should be. It’s important to remember that your earnest money is typically non-refundable if you decide to back out of the deal for any reason other than contingencies written into the purchase agreement. That’s why it’s essential to find a home you’ll be happy with and understand all contractual provisions before signing.

A deposit demonstrates your commitment to the purchase and your plan to follow through on the contract. But there’s a real risk involved: If you withdraw your offer or change your mind, you might lose your deposit and be out of a chunk of cash.

Here are ways to avoid losing your earnest money when buying a home

1. Understand the Contract. The first and most crucial step in protecting your earnest money is understanding the contract. The contract outlines the terms and conditions of the transaction, including the timelines and contingencies. Make sure you read and understand every detail before signing. If you have any questions, do not hesitate to ask your real estate agent or lawyer. It is imperative to look at closing dates and other dates related to the process leading up to closing. Violating the timeline could also cost you your earnest money
2. Work with a Qualified Real Estate Agent. A knowledgeable and experienced real estate agent can guide you through home-buying and help protect your earnest money. They can help you understand the contract and contingencies, perform due diligence, and negotiate on your behalf. 
3. Don’t sacrifice contract contingencies. It is easy to get caught up in the excitement, but keep your desire for a home from causing you to hastily remove contingencies that are built into contracts to protect buyers. Typical contingencies include loan, title search issues, appraisal, and insurance obstacles. Make sure you consult your realtor before you waive these. You need to fulfill the contingencies outlined in the contract before the deadlines. If you cannot satisfy the contingencies, you may need to cancel the contract and risk losing your earnest money.
4. Avoid committing to a home “as is.” If you’re putting earnest money on an offer for a foreclosed home, don’t be too eager to accept any home problem. Take the time to understand the home’s issues before writing the offer.
5. Be Prepared for the Worst. Ensure you have recourse to get some or all of your earnest money back. If the sale doesn’t finalize, you and the buyer must sign a document voiding the agreement. It is always a good idea to prepare for the worst-case scenario. If the deal falls through due to circumstances beyond your control, you may need to forfeit your earnest money. However, you can protect yourself by including a contingency that states the earnest money will be refunded if the deal falls through due to specific reasons, such as the seller’s failure to disclose information.

Buying a home is a significant investment, and protecting your earnest money is crucial. By understanding the contract, performing due diligence, fulfilling contingencies, being prepared for the worst, and working with a qualified real estate agent, you can avoid losing your earnest money and ensure a successful home-buying experience. If you have questions or concerns, contact me to help you understand everything in plain language!

Ready to buy? Let me help you find the right home and protect your interests along the way! 

Trent Beaver
928-916-1921

Don’t Skip The Walk-Through

Ready to become a homeowner? Congratulations! Before you have the keys and the deed is in hand, there’s one final step – the walk-through. A final walk-through is a crucial part of your home-buying process, as it assures that the property you are purchasing is in the agreed-upon condition and ensures that everything looks as it should before you take ownership of your new house. Read on to learn why a walk-through before closing is essential and how best to approach this task.

Why Do a Final Walk-Through

Final walk-throughs are not a home inspection or a time for negotiations. Instead, the final walk-through allows us to address common issues such as:

• If the current owner is on schedule to move out
• That the property is in the same condition it was when shown
• That any repairs required have been completed

Vacant Home or Occupied?

For homes that are vacant or still occupied, final walk-throughs are vital.

If the seller has moved out of the home, and it is now vacant, problems may have arisen while the house was vacant. Leaking faucets causing flooding or other plumbing problems could have occurred, and a final walk-through will help catch the problem before closing.

On the other hand, if the sellers still need to move out, make sure the seller is present during the final walk-through. Sellers will be able to explain details about the house that the buyer may need to know, especially tricky pool heaters, access to attics, funny light switches, and sprinkler timers.

Additionally, the final walk-through is a time to compile a list of companies that have previously serviced the house.

I like to schedule final walk-throughs at least 4 – 7 days before closing, as this is often enough time to resolve any outstanding issues before paperwork must be signed. (The walk-through itself may happen within 24 hours of closing.)

Checklist for the Final Walk-Through

• Electrical: Check the home’s electrical system by turning on and off every light switch and checking the electrical outlets. A great way to check the outlets in your home is to bring a phone charger and plug in your phone to ensure the outlet is functioning correctly. Also, check to ensure the garage door, security system, and doorbell are in working order.
• Doors and Windows: To check latches and locks, open windows and doors. Make sure your home is secure.
• Plumbing: Flush toilets, run faucets, and check under sinks for leaks. Ensure the bathrooms are free from water damage and that the sinks and bathtubs drain properly.
• Heating and Air Conditioning: Whether it is freezing or hot outside, test the heating and air conditioning.
• Appliances: Test the oven, dishwasher, open the fridge & freezer, and don’t forget to turn on the washer & dryer.

I’m dedicated to protecting my clients from the beginning through the end of the home-buying experience. If you want to work with someone who pays attention to the details, give me a call today:  Trent Beaver (928) 916-1921

As a REALTOR ®, Trent puts his client first by being a good listener and communicator and responding to your needs quickly. He upholds his core values and looks to be your lifetime REALTOR ® finding you the best home or property that suits your needs.

To elevate his level of service, Trent has developed a list of resources for his clients. Trent recognizes the need to feel confident in who you hire, and sometimes that isn’t easy, especially if you are new to the Prescott area.

Trent has developed ThePremierList.com website to help navigate trades, businesses, and information on area utilities. ThePremierList.com website makes navigating home ownership easier.

The Premier List is about providing our clients with stellar service after the sale. We pride ourselves on being available to you and your resource to help you as you get comfortable in your home, but we also want to be there for you whenever you need something. Whether you’re already thinking about a remodel, you need some minor handyman service once you have got situated, or you are looking for options for estate or tax planning; we are here to help. The Premier List offers options for you to search depending on what you need, and if you don’t see what you’re looking for, by all means, please give us a call or send over an email; we’re here to help, and we will place you with a trusted resource to help you with your need.

The Premier List Resources

• Financial & Legal
• Home Builders
• Home Repair
• Inspections & Appraisals
• Utilities
• CC&Rs

Buying a house in the Prescott area is a great decision that can be made easier by knowing the available resources. Whether you’re looking for home inspectors, subcontractors, or general moving help, many quality local businesses are ready to help with your transition. Also, remember to call Trent Beaver and the Premier Homes Team! With their incredible knowledge of the real estate market in Prescott and all the resources they bring, they can make this exciting step into homeownership more fun and stress-free, (928) 916-1921.

Whether you’re a first-time homebuyer or a seasoned pro, some telltale signs tell you when it’s the right time to make an offer on a house. The market is constantly shifting and changing, so staying current on the latest trends and data is essential. If you’re unsure of when to pull the trigger, we put some tips together to help you out.

We understand, house hunting can be overwhelming.

As realtors, we understand that you are preparing to make a substantial financial and emotional investment. As a future homeowner, you take great care to find a place that is “just right” for you and your family. You can even get a little addicted to touring houses, always convinced the perfect home is just about to hit the market. Sometimes the inability to pull the trigger on the house can cause serious shopper’s remorse. You could miss out on a home that, in retrospect, was ideal.

So how do you know a home is “the one”?

Here are some practical ways to check your buying temperature and know when it’s time to make an offer:

1. The home fundamentally meets your needs. There’s plenty of compromise in home hunting, so take note when you find one with the basics covered.

2. You would consider renovating for those luxurious little extras. Maybe the home is missing that pool you’ve always wanted or is missing a detached workshop/garage space. These factors help recognize the home’s potential when you think you would be up to tackling a project to make it perfect.

3. You’re in love with the kitchen. Studies show that most of our waking hours are connected to or using the kitchen. If you’re in love with the kitchen but think the master bedroom is a little small, consider where you would be spending most of your time. Careful not to pass on the home when it could be the one.

4.The bathroom feels comfortable to you. Many times, other people’s bathrooms will give you the creeps. If you feel good about the bathroom, it’s a healthy sign.

5. You start to see your possessions in the house. If you’re thinking, “ah yes, the flatscreen could go on that wall,” and “wow, my bed would fit perfectly in this suite,” then you’re starting to imagine the house as your own.

6. You picture where you are going to place your Christmas tree. Many professionals claim that when you visualize where your tree will be placed, you may be in the ‘right’ home.

7. You become possessive about the house and defend every flaw you see. Maybe your agent points out a flaw and says, “There is a stain in the kitchen sink,” and you become defensive to them for saying something so mean about this house. If you see the flaws and decide that defects do not matter, you’re falling in love.

8. The idea of someone else buying the home gives you a pit in your stomach. Pay attention if you’re “sleeping on the decision,” and the idea that a home is no longer an option makes you anxious. It could be time to offer.

If you’re considering making an offer on a house, there are several key factors to keep in mind.

1. Location: The location of the property is crucial. You’ll want to consider things like the surrounding neighborhood, public transportation, and schools in the area.

2. Size: The size of the property is another vital factor to consider. You’ll need to decide how much space you need and what kind of layout you’re looking for.

3. Condition: The property’s condition is also an important consideration. You’ll want to inspect the property thoroughly before making an offer to ensure no significant repairs are needed.

4. Price: Of course, the property’s price is crucial in deciding whether to make an offer. You’ll need to consider your budget and what you’re comfortable spending on a home.

5. Financing: Another vital factor to consider is financing. You’ll want to get pre-approved for a mortgage and compare interest rates before making an offer on a property.

6. Warranties and inspections: You’ll also want to ensure that warranties or inspections are in place before making an offer. These components can give you peace of mind knowing that the property is in good condition.

7. Title insurance: Another essential factor to consider is title insurance. Title insurance will protect you if there are any property title problems.

8. Homeowner’s Insurance: Another factor to consider is homeowner’s Insurance. Homeowner’s Insurance will protect your investment in case of any damage to the property.

9. Closing costs: You’ll also need to budget for closing costs, which can include things like loan origination fees, title insurance, and appraisal fees.

10. Timing: Finally, you’ll need to consider the timing of your offer. If your offer is accepted, you’ll want to ensure you’re prepared to move forward with the purchase quickly.

We Can Help!

So, what are the signs that it’s time to put an offer in on a house? Well, there is no definitive answer, as each situation is unique. However, if you have been watching a property for sale and feel ready to make an offer, give me a call. I would be happy to help you through the process from start to finish! (928) 916-1921