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/u/Dangerous_Bass_4597
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Hi folks,
I am currently working on moving out of state and the state I am moving to has a vastly different culture around buying/selling homes than where I currently live.
Where I currently live (and where I just sold a house) we have a lot of disclosure laws and we have to fill out the seller’s disclosure with a lot of detail. Here due diligence funds are not a thing, and people usually do 1% tops for earnest money.
Where I am moving, sellers do not have to disclose anything so the “sellers disclosure” comes with no representation selected for literally everything. Like even for if they have public or private water when that is literally listed on Zillow. Also, the expectation is for buyers to put essentially 1% down for due diligence funds when making an offer - which if we walk due to the inspection is non refundable. AND 1% down for earnest money which is refundable until after you accept the inspection report. So for many of the houses we are looking at this would be 8-10k with half or more being non refundable if the house is jacked.
Is this normal?? I am struggling to adapt to this method of buying a home since it feels so lopsided to benefit the buyer. Houses are sitting on the market for months right now so it feels we should have bargaining power but losing out on 5k if something comes up on the inspection is making me not want to offer on nearly anything.
I guess I’m just looking for advice or an explanation from someone who lives somewhere similar?
submitted by /u/Dangerous_Bass_4597
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Due diligence funds and nondisclusure state!?
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I am currently working on moving out of state and the state I am moving to has a vastly different culture around buying/selling homes than where I currently live.
Where I currently live (and where I just sold a house) we have a lot of disclosure laws and we have to fill out the seller’s disclosure with a lot of detail. Here due diligence funds are not a thing, and people usually do 1% tops for earnest money.
Where I am moving, sellers do not have to disclose anything so the “sellers disclosure” comes with no representation selected for literally everything. Like even for if they have public or private water when that is literally listed on Zillow. Also, the expectation is for buyers to put essentially 1% down for due diligence funds when making an offer - which if we walk due to the inspection is non refundable. AND 1% down for earnest money which is refundable until after you accept the inspection report. So for many of the houses we are looking at this would be 8-10k with half or more being non refundable if the house is jacked.
Is this normal?? I am struggling to adapt to this method of buying a home since it feels so lopsided to benefit the buyer. Houses are sitting on the market for months right now so it feels we should have bargaining power but losing out on 5k if something comes up on the inspection is making me not want to offer on nearly anything.
I guess I’m just looking for advice or an explanation from someone who lives somewhere similar?
submitted by /u/Dangerous_Bass_4597
[link] [comments]
Due diligence funds and nondisclusure state!?
Continue reading...