Recently I wrote a contract for a client on a home located in Huntsville, Alabama. This buyer was an investor, looking to purchase a rental property. He had no emotional ties to the property we found. His focus was strictly on the bottom dollar, cash flow potential. In the written offer, we asked the seller to contribute $5,700 toward closing and prepaids. That is different than asking the seller to contribute only toward closing, which in this case amounted to about $3,500. What are closing costs and prepaids?
Read More…
Posted in
Contracts at July 31st, 2008.
No Comments.
Last week, a friend came to me looking to purchase another investment property. She and her husband purchased a home in Madison from me several years ago which turned out to be a very good investment, and now they were ready to buy another property in the Madison – Monrovia – Huntsville area. We spent an afternoon looking. The next day she called to tell me she found the perfect FSBO home, and wanted to enlist my advice. She was going to meet with the seller later that evening to sign the contract and turn over quite a hefty earnest money deposit.
Read More…
Posted in
Contracts at July 31st, 2008.
No Comments.
This is Business- Don’t take it Personally!
Different states have different rules regarding defects and disclosures (consult your local Realtor for details). Alabama is what we call a “non-disclosure” state, otherwise know as “buyer beware!” What this means is that it is up to the buyer to uncover defects.
Read More…
Posted in
Contracts at July 31st, 2008.
6 Comments.