Byron Carlson Petri & Kalb, LLC | attorneys at law

3 common mistakes when closing on real estate

On Behalf of | Jul 13, 2021 | Closings, Real Estate

You have probably made mistakes when spending money and ended up regretting your purchases. Yet, few buyer errors will be as catastrophic as those when purchasing real estate. Property is expensive, so you want to be sure you spend your funds wisely.

When you look to buy real estate, you face two sets of people willing you forward to sign the deal — the seller and their realtor. It is only natural that they put their interests above yours, so you need to beware as a buyer.

Real estate closing errors are easier to prevent than rectify

Once you sign on a property, backing out may not be possible or may only be possible at a price. Therefore it pays to take your time and do the necessary research before signing anything. Here are some things to watch out for:

  1. Taking sellers at their word: A seller may not know everything about their home, despite having lived there for years. Some faults are not visible and may only be detectable by a specialist with specialized equipment. Having a professional survey carried out is crucial.
  2. Failing to understand the financing: When you buy a property, it will cost you much more than the asking price.  Ensure you have enough for the fees involved and know how much the mortgage lender will expect you to pay each month and how that could change. If you cannot keep up with payments, you may lose everything.
  3. Not building in an escape route: Contingency clauses specify the circumstances in which you can walk away from the deal. For instance, they can protect you if you discover structural flaws or cannot secure financing because you cannot sell your current home.

When you sign to close on real estate, you enter into a legal agreement. Having someone to help you understand what you are signing and protect your legal rights is crucial to a successful purchase.