The average adult who is thinking about buying a home in Arizona is surprisingly flippant about how much financial risk comes with homeowner status. Some buyers are impulsive when making offers, and others become competitive, feeling like they have to win over other prospective buyers at all costs. The wrong approach can lead to people taking more risks with their finances and future than is necessary.
For example, people often use boilerplate documents to submit an offer and focus only on maximizing the price to make themselves stand out from other buyers rather than focusing on ways to protect themselves, even if it means it takes longer to get to the closing table. Custom real estate offer documents and purchase agreement contracts are perhaps the most valuable form of protection for someone who is looking to buy real property in Arizona, and too many people forego the best protection in favor of the fastest solution.
Custom contracts may include contingencies
Although boilerplate documents include a checklist of contingencies, many buyers, eager to get to the table, simply waive all contingencies or any contingencies not required by their mortgage limit. However, having a way to protect one’s earnest money if the appraisal comes in low or the inspection uncovers serious issues with the property is very important. Buyers will otherwise find themselves locked into a purchase or at risk of losing the money they deposited as earnest money.
Buyers can clarify their expectations and rights
Does the buyer agree to allow the seller to stay at the property after closing if necessary while they look for a new home, but only if they receive a reasonable amount of rent? Did the buyer offer a specific price because the seller made a verbal commitment to leave behind certain furniture or perform certain repairs?
Including handwritten additions in an addendum to a purchase agreement is better than having no protection at all, but putting together a custom contract that specifically dedicates language to those unique terms will make them easier to enforce and give a buyer better protection during what will be a very large and complex transaction.
Those who cooperate with a lawyer throughout the home-buying process will also be in a better position to assert their rights or take legal action if there are major issues during the transaction. In these ways, creating custom offer and purchase agreement paperwork can help minimize the risk involved in buying real estate.