What Contingencies To Include In Your Home Purchase Offer

After days, weeks, or months of searching the homes for sale at the Lake of the Ozarks, you've finally found your dream home! Now it's time to begin the process of negotiating the sale so you can work towards making the home your own. The first step is submitting an offer detailing your suggested terms of the sale. A good offer contains several important components. This week, we want to look specifically at one such component: contingencies.

What Are Contingencies?

When A is contingent upon B, it means that A will only happen if B does. In a real estate purchase agreement, including contingencies means that your offer will only remain valid if certain conditions are met. This allows you to back out of the agreement if other parts of the process fall through or reveal information that changes how you feel about the purchase.

Common Contingencies To Include

There are several different types of contingencies that may be included in your home purchase contract. Here are a few examples of some of the most common ones.

Inspection Contingency
The home inspection is a critically important part of the home buying process. During the inspection, a professional inspector will thoroughly evaluate the home from top to bottom, inside and out. If the inspection report reveals something that is not up to code, in poor condition, and/or requires extensive and costly repairs, you may not wish to purchase the home as is. This contingency may allow you to negotiate the repair into the sale or potentially back out of the agreement entirely.

Financing Contingency
Even if you already have a pre-approval letter from your mortgage lender, the financing will not be official at the time that you submit your offer. While it may not be likely, there is always a small chance that something will fall through and you may not be approved for your loan. If you are not able to get the financing required to purchase the home, this contingency will allow you to back out of the sale.

Title Contingency
When you submit an offer, you will have to specify which title company you would like to handle your transaction. The title company will then conduct a title search to identify any potential issues with the title. In some cases, issues may be revealed that you don't want to deal with. The current owner may have an ex-spouse who still has some claim to the title, for example, or you may learn that the person trying to sell the property actually has no legal claim to the title. The title report may also reveal any outstanding liens that need to be resolved.

House Sale Contingency
If you have a current home that needs to be sold before you can purchase a new one, you may want to include this contingency. If your ability to purchase your new home will be dependent upon the sale of your existing home, this contingency can provide valuable protection. However, it is worth noting that this contingency is not always as common and may discourage sellers from accepting your offer simply because they may not feel as confident about the sale going through.

Designing Your Real Estate Purchase Contract

These are examples of a few common types of contingencies, but there are several other ones that may be beneficial depending on your unique situation. When you are ready to submit an offer, your Lake of the Ozarks real estate agent will help you determine which contingencies to include and how to structure your purchase agreement so as to best protect your interests. Visit our website to learn more about our real estate resources for buyers.

The Property Shop at the Lake

2086 Horseshoe Bend Parkway

Lake Ozark, MO 65049

(573) 693-1100

(573) 480-7760

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What Is A Short Sale?

If you're looking for a new house at the Lake of the Ozarks, you're probably looking for a great deal. After all, every homebuyer wants to secure a good house at an even better price. However, The Property Shop at the Lake wants you to be aware that if you have found a home that seems to good to be true... it very well could be.

Short Sale Properties

In a short sale, homes are sold for less than the amount that the original homeowners currently owe on their outstanding mortgage, which means that the lender will not be paid back all that is owed to them. Most lenders are (understandably) hesitant to agree to short sales, but they can be attractive options for buyers because the sale prices are typically much lower than that of other properties. However, buying a short sale property can come with its fair share of risks and potential pitfalls. This week, our team of experienced real estate agents at the Lake of the Ozarks is here to help make you aware of some of these potential dangers.

Things To Know About Buying A Short Sale Property

The Deal May Not Go Through.

Short sale properties are infamous for taking a long, long time for the negotiations to be completed - and sometimes for falling through altogether. With so many different factors demanding attention and so many lengthy negotiations taking place, short sales often take a long time from start to finish. If you are anxious to move into your new home in Osage Beach MO, buying a short sale property may not right for you.

The Property May Not Be In Great Condition.

Short sale properties are, essentially, one step up from foreclosure properties. While the current homeowners have not gone all the way into foreclosure, they must be in a dire financial situation in order for their lender to agree to a short sale. As a result, they probably do not have the funds required to keep their home in good condition. As the new owner of such a property, you may be required to pay for expensive repairs or renovations after moving in.

The Home Inspection Will Be Even More Important

Because the home may not be in great condition, the home inspection will be an even more critical part of the transaction process. We encourage you to book your inspection for a time when you will be able to attend. Your inspector should be able to explain all of the important details and point out any potential problem areas that will need careful attention in the future. It's important to go into the transaction with your eyes open!

You Will Need The Help Of An Experienced Agent

With so many important factors and details to consider when buying a short sale home, navigating the process by yourself may be a dangerous proposition. If you are considering a short sale property, we strongly encourage you to talk to one of our Lake of the Ozarks real estate agents. Our team members can help you carefully navigate the process from start to finish. Give us a call at (573) 693-1100 or visit our website to learn more about how our team can help you with your negotiations!

The Property Shop at the Lake

2086 Horseshoe Bend Parkway

Lake Ozark, MO 65049

(573) 693-1100

(573) 480-7760

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Interest Rates: How They Impact Your Purchase

If you're new to the real estate market, you have a lot to learn before your buy your first house at the Lake of the Ozarks. With so many different aspects and all of their accompanying details, it can be a lot to take in all at once. At The Property Shop at the Lake, we make it a point to help our clients get all of the information they need to make educated decisions. This week, we're here to help you to learn more about interest rates and how they impact your home purchase.

Why Interest?

When you purchase real estate at the Lake of the Ozarks, you are not the only one who is making an investment - your mortgage lender is making an investment, too. When you buy a house, your lender is the one who pays the seller outright (by loaning you the money). Your mortgage payments over the next fifteen, twenty, or thirty years go towards paying back that loan.

This process allows you to reap several rewards, such as having a place to live and accumulating the "forced savings" that come from building equity in your home. By charging interest, your lender gets a reward, too - they make money off of their investment. It's a symbiotic relationship; by working together, both parties benefit.

What Are Interest Rates?

Interest is the money the bank makes off your mortgage loan, and interest rates are the factors that dictate how much money that is. Interest rates are a percentage of the total purchase. Currently, rates range anywhere from approximately 2.98% to around 4.16%. The exact rate you can get will depend upon several different factors, such as the type of loan you get, the duration of the loan, your credit history, and more.

How Much Will Interest Rates Really Affect My Purchase?

Your interest rate will have likely have a huge impact on the affordability of your home, as it will impact how high your monthly payment is and the total dollar amount you will end up spending on the home. Consider this graph:

Source: KeepingCurrentMatters.com

NOW Is A Great Time To Buy!

As you can see from the graph, interest rates are currently at an all-time low, which means it's easier to afford more expensive houses. While it is impossible to predict whether the rates will lower or raise in the future, our Lake of the Ozarks real estate agents believe that it is always better to be safe than sorry! If you are thinking about purchasing one of the homes for sale at the Lake of the Ozarks, let us help you get the process started. You don't want to risk the interest rates rising before you get the chance to buy!

The Property Shop at the Lake

2086 Horseshoe Bend Parkway

Lake Ozark, MO 65049

(573) 693-1100

(573) 480-7760

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5 Essential Kids' Bedroom Decorating Tools

Ask any parent, and they'll tell you that raising kids is one of the most rewarding things you'll ever experience. Whether it's your first child or your fifth, creating a safe, enriching home for your child to grow up in is a big part of parenting. Since real estate is (obviously) very near and dear to our hearts, the team at The Property Shop at the Lake wanted to take this opportunity to share with you some of our favorite ideas to decorate your children's bedrooms.

1. Wall Decals

Looking for a fun, simple, and (better yet) non-permanent way to personalize your children's bedrooms? Wall decals could be perfect solution. From their names to trees and flowers to baby animals, wall decals come in all sorts of shape and sizes. Choose your favorite theme and go for it!

2. Chalkboard Paint

"Stop drawing on the walls!" Rather than fighting this constant battle with your little ones, you can let their creativity flow all over the bedroom walls without any cause for concern. Chalkboard paint works just like its name implies - your children can draw pictures all over the walls with chalk, and then simply erase it when they are ready for a new creation. They will love it!

3. Galvanized Metal

Did you know that galvanized metal is magnetic? It can be purchased in sheets from most home improvement stores. By hanging a few sheets around your child's room, your children can use them as magnetic boards to showcase their favorite drawings and pictures.

4. Glow-In-The-Dark Paint

Bedtime might not be so hard if your child got to fall asleep in a magical room that glows in the dark! Painting all of the walls with glow-in-the-dark paint might be a little extreme, but this paint works perfect for adding little stars, moons, or planets as accents.

5. Bookshelves

Bookshelves are good for a lot more than storing books. In kids' rooms, they can also be used to showcase favorite toys, knickknacks, or miscellaneous treasures. They can also be a great place to store cubbies or baskets filled with markers, crayons, scissors, glue, construction paper, and more.

Need A New Home To Raise The Kids In?

We can help! If you are looking for a new home at the Lake of the Ozarks, pick up the phone and call The Property Shop at the Lake at 573-693-1100. We can help you comb through the MLS to find the properties that best meet the description of your dream home, and we can help you critically evaluate each potential home to make sure it's kid-friendly. Let us know when you want to get started!

The Property Shop at the Lake

2086 Horseshoe Bend Parkway

Lake Ozark, MO 65049

(573) 693-1100

(573) 480-7760

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