In our 30 plus years of experience here in Las Cruces we have run into just about every kind of problem that causes delays or even kills the purchase and sale of your home. This week we thought we’d share some of the most common mistakes made when dealing with contracts and how to avoid them. Of course, the best way to avoid all of these is to work with an experienced Realtor, like myself.

Here are 4 ways to avoid making common contract mistakes.

1. Give yourself time to get a loan

Many contracts are contingent upon the buyer getting financing by a certain date. In today's tough lending climate, buyers are wise to allow themselves plenty of time to get approval for a home loan. If the date passes and no financing is secured, the sellers may terminate the contract and keep the earnest money deposit.

You should also be realistic about your closing date. Don't try to close too quickly. There are a lot of things that need to be done properly, and you must give lenders, title companies and others time.

2. Be specific about which items stay with the house

You've likely heard the story of the buyer who walked into a new home only to discover that the refrigerator and chandeliers were missing. Check the contract.

 One year while my husband and I were on vacation in Russia, we got a phone call about a house whose refrigerator went missing. It turns out,  there was a misunderstanding about whether the fridge came with the house or not. The previous owners were in actuality taking it with them when they moved. Because it was stated that it would come with the home in the contract, a new refrigerator had to be bought. 

As a seller, be sure you specifically state on the contract what will stay with the home.
As a buyer, pay attention. Don't assume that the Sub-Zero refrigerator is yours once you close.

3. Know the dates for all the terms and contingencies

Surprise! The contract doesn't always take effect on the day you sign it.
In every contract, there are things that must be done within X number of days from the effective dates: inspections, loan applications and approval, title searches. If you don't know the dates by which all contingencies must be removed and all terms met, you may not have a valid contract.

4. Get everyone to sign

Sometimes the home is owned by both spouses, other owners or an entity such as a corporation. Whether it is the listing agreement or purchase agreement, all parties must sign the contract. If a party to the transaction fails to sign, that contract is invalid.

Buying a house is one of the biggest financial decisions you're going to make. Simply, take it seriously and make sure everything that's important to you is in writing.

As you may know, one of the most important parts of the buying process is financing. Many people find the financing process intimidating. I’m here to tell you it is not as scary as you would think. Our complete step-by-step financing guide will provide you with all the information you need to have a smooth and successful experience.

Download the Complete Guide to Financing by using the link below:
http://www.buyingahomeinlascruces.com/home_financing_guide_intro.php