Tip 8. Make a Deposit
After both parties are agreed on the final price, you have to secure financing with a deposit. A deposit with an offer on a piece of property demonstrates that you are in earnest about buying it. An offer can be made without a deposit; however, a seller is less likely to accept it. If the conditions of the purchase agreement can't be met, including any additional terms, you are entitled to get your deposit back. Make sure you include terms in the purchase agreement that benefit you, the buyer. For example, that you will get your deposit back if you can't secure financing. Also include the exact terms of the mortgage. Include additional terms if you need to sell your present home before you can finance another one, or if problems are found during house inspection (be very specific in describing those terms). The seller will usually suggest a deposit of 1 to 5 percent of the purchase price. If the deal doesn't go through and it's your fault, you will not be entitled to a return of the deposit. Place the deposit with a neutral party (such as an escrow company) who will have it on hand to pay back if necessary.
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