Vail Daily column: Move ahead or go slow with property purchase?
July 15, 2016
I am thinking of putting in an offer to purchase a property, but I have a few reservations about the construction and condition of the home. I am also worried about qualifying for the loan, since it is at the very top of my price range. My Realtor is encouraging me to go ahead and put in the offer because I can get out of the contract for any reason" during the inspection period. I would like to take a little more time and check into several things before going forward. He says I may not need to check into anything if someone else buys it in the meantime. What are your thoughts?
You have uncovered several things that are sometime misunderstood when purchasing, or selling for that matter, a property. Your Realtor is right to advise you to do normal due diligence once you have a property under contract, if you are sure you want to purchase this property.
In some areas of our valley, we have some very hot, competitive markets going on and there are multiple offers in a short span of time. You do not want to be spending time and money investigating something you might never own. As far as your financing goes, you can make a phone call to your lender and easily discuss the asking price, and your offer price with your lender to get a quick sense of the possibility of you qualifying, and if you would be comfortable with the payments.
I think the most important thing to decide is whether or not you really want the home and are willing to earnestly and honestly try to purchase it if you put it under contract.
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There is a small but important clause in the Colorado Real Estate Commission contract to buy and sell real estate at the very end of the contract, before the additional provisions. I liken this paragraph to the old fashioned handshake, in which you put your honor on the line. It is actually also upheld by courts of law, if proven to be violated.
This Paragraph 29 is titled "good faith." It reads: "Buyer and seller acknowledge that each party has an obligation to act in good faith, including, but not limited to, exercising the rights and obligations set forth in the provisions of financing conditions and obligations, title insurance, record title and off-record title, new ILC, new survey and property disclosure, inspection, indemnity, due diligence, buyer disclosure and source of water." Therefore, I am not an attorney, but I believe this paragraph requires both the seller and buyer to genuinely attempt to make every facet of the contract work, so that they can both to go forward to closing, if possible.
Of course, there may be unforeseen obstacles along the way, so no one is sure of the outcome. This is merely about intent. Once you are clear on whether or not you would like to own the property, I think the rest will fall into line. Best of luck to you.
Joan Harned is an owner and broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or http://www.SkiAndTeeHomes.com.
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