Dawn (253) 307-6438
Brandon (253) 732-0778
FSBO – Buyer Pitfalls, Part Four
FSBO – Buyer Pitfalls, Part Four
Another issue that can come up for a buyer is not having the proper forms in place to protect them which would put their earnest money at risk.
One form that protects the buyer is the Financing Addendum. If this isn’t in the contract, but the lender initially said they were qualified to buy but their circumstances changed for some reason like they lost their job or their credit score dropped they would lose their earnest money deposit without having these protections in place.
The financing addendum covers you for any reason that may come up that would keep you from obtaining financing. One thing very important on this form is protecting you in case the home does not appraise for what you purchased the home for. In this market you may “think” you are getting a good deal and then your lender calls you and tells you that the home did not appraise for the purchase price. Now what? You didn’t have the proper forms in place to protect you. Let’s say you purchased the home for $400,000 and it only appraised for $380,000. Without proper protections in place you now either have to come up with the additional $20,000 out of pocket or back out of the transaction and lose your earnest money.
The Heilbrun Home Team at John L. Scott, Orting will protect you from the pitfalls of buying a home! We’re never too busy for YOU or YOUR referrals!
For All Your Real Estate needs in Pierce and King County!
Dawn Heilbrun, Owner
253-307-6438
The Heilbrun Home Team
John L. Scott, Orting
www.dawnh.johnlscott.com
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