The Importance of Timelines When Buying or Selling A Home
Timelines are critical when it comes to buying any type of real estate. The timelines set when certain things must happen and if missed the buyer or the seller can lose out on some important rights that they have based on those timelines. This article looks at what timelines are common when buying or selling a home and the consequences if those timelines are missed.
Common Timelines In A Real Estate Contract
In most real estate contracts, whether for commercial or residential transactions there will be due dates for accepting the offer, inspections, responding to repair requests (including request for price reduction based on repair issues), financing (if used), depositing earnest money, and the closing date. All the dates listed out in the contract are deadlines that if missed can cause a breach of contract claim. Both the buyer and the seller each have their own due dates they need to stick to in order to have a smooth transaction.
While an appraisal will generally be required when financing is used (there are some exceptions) usually there is no timeline required for the appraisal. An appraisal is usually ordered by the buyer’s lender after the home inspection is done. Since buyers are paying for the appraisal the lender will wait until the buyer gives them the green light to order the appraisal in order to help the buyer save some money if the deal gets cancelled due inspection issues. Appraisers are an independent part of the real estate process and their part only...
Tips For Buying Commercial Real Estate
When it comes to buying commercial real estate, the approach is a bit different compared to buying a home. Residential homes have thirty-year fixed mortgage rates as well as lower interest rates compared to commercial mortgages. Commercial real estate has shorter overall terms, higher interest rates and the lender will look pretty closely at the commercial property to see if it can support the commercial mortgage loan. This article looks at what the new commercial real estate investor should be considering before they start on their adventure.
What Is Your Reason For Buying Commercial Real Estate?
For those wanting to buy commercial real estate as an investment the lender considerations will be somewhat different as compared to someone wanting to buy to have their business in the commercial space. When buying as an investment, the commercial mortgage lenders are usually looking for at least 20% down and will want to see that the current businesses occupying the property are producing enough income to cover the commercial mortgage loan payments.
For those wanting to buy commercial real estate to house their own business there are some more options available. In this situation the business owner can buy a building just for themselves and need not worry if there are tenants in place. While having tenants in place who rent some of the building is better for the business owner since they have someone else helping to pay the mortgage. Business owners also have more lending options to buy commercial real estate for business purposes...
Fewer luxury homes sold in January 2022 compared to December 2022. Overall inventory of luxury homes available for sale also saw a decline in January. Median price stayed about the same and as Federal Reserve actions to increase interest rates take effect the real estate market should see a further slowdown as well.
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