There’s no question that now is the time to buy a home in Massachusetts. The price is right, mortgage rates are more attractive than ever and home ownership beats renting any day. However, buying a home is one of the most important decisions of a lifetime. In order to make sure you’re getting the best care possible you need to work with a trusted, experienced and knowledgeable agent. This will be your go-to person for any question or concern that comes up during the process, whether it is an inquiry about the status of your contract or a question about mortgage rates or financing.
When searching for your next Hopkinton home, your agent understands that you may be calling them once a day (or more!) for updates. Whether it’s your first home purchase or you’re a seasoned home buyer, it’s inevitable that questions will pop up along the way. As your Hopkinton real estate agent, here are the answers to a few you’ve already been wondering about…
Earnest Money: Earnest money is a part of the initial contract, and specifies how much money the buyer is putting up to secure the contract. In other words, earnest money is a “good faith” deposit, and is not to be confused with a down payment. An earnest money deposit is required after the acceptance of any offer, usually requested within 24 hours after contract acceptance. This deposit sends a message to the seller, letting them know that you are serious enough about the property to put money on it to make a serious offer with earnest money. While there is no set amount of how much earnest money should be, the standard minimum is $500, and is generally between 1-3% of the total sales price. Take caution with your earnest money. In the event the contract is canceled, read your contract and discuss with your agent whether or not the deposit will be refundable.
Contingent: When you see that a property is “contingent” this means that there is an accepted offer on the property, but there are certain conditions that are awaiting approval. For example, the contract could be contingent upon financing, inspection, or the buyer selling their current home. When you see this status, don’t pass up the home. Contact your Hopkinton real estate agent to find out what the specific terms are of the contingency and then determine if the home is still of interest to you. Just because a property is contingent there is no guarantee it will close, and most sellers are willing to hold backup offers in case the deal falls through.
Multiple Offers: So you have an offer on your Massachusetts dream home. The only problem, your agent just informed you that there are multiple offers. You’re discouraged because like any eager homebuyer, you were hoping for an acceptance or at least a counter offer. Now you have to compete with other buyers. Don’t jump to conclusions just yet, because a multiple offer situation doesn’t necessarily mean bad news. When a property has multiple offers it gives the buyers the chance to raise their offer, keep it the same or walk away from the property. To put it simply, the seller is looking for the highest offer they can get, with terms that are best suited to them. While you are under pressure to decide what kind of offer will win you the property, you are also given the chance to decide how badly you want the home.
Buying a home is stressful enough. Don’t add to it by not staying informed. In real estate, no question is wrong or outlandish, and your agent will be appreciative of your willingness to get the facts. As your Metrowest real estate agent, it is my responsibility to make sure you are educated and informed throughout the entire buying process. If you have any questions about buying a home, or if you’re ready to begin your quest for the ideal Hopkinton property, feel free to contact me anytime.
John Savignano
Hopkinton, MA Real Estate Expert
RE/MAX Executive Realty
Hopkinton Real Estate
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