First-Time Buyers
First-Time Buyers: NEVER Agree to these 5 Contract Terms!
Learn which contract terms can cost you thousands as a first-time buyer and how to negotiate better language before you sign on the dotted line.
What You Will Learn
The purchase contract is the most important document you will sign in the home buying process. Yet many first-time buyers sign without understanding which terms work in their favor and which ones leave them exposed. In this video, Patrick walks through five specific contract terms you should question or avoid entirely.
Patrick's experience as a REALTOR means he knows exactly how sellers and listing agents use contract language to protect their interests. His advice helps first-time buyers recognize when a clause puts them at a disadvantage and how to negotiate better language so they are protected through closing and beyond.
Key Takeaways
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Never Waive Your Inspection Contingency Without Protection
Waiving the inspection contingency means you lose the right to negotiate repairs or walk away if the inspection finds major issues. If a seller asks you to waive it, Patrick explains how to limit your risk with alternative protections.
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Avoid As-Is Clauses Without an Inspection Window
Some sellers ask for as-is terms. That does not mean you skip the inspection, but it limits the seller's obligation to make repairs. Patrick recommends including an inspection period so you can still decide if the as-is price is worth it.
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Watch Out for Extended Closing Timelines Without a Rate Lock
A long closing period with no rate lock protection can backfire if rates rise. Patrick explains how to align your closing timeline with your rate lock window so you are not stuck with a higher rate.
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Review the Earnest Money Terms Carefully
Know exactly under what conditions your earnest money is refundable and when the seller can keep it. Patrick explains the standard contingencies that protect your deposit and what changes to watch for.
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Do Not Agree to Waive the Appraisal Contingency Without Backup
If the appraisal comes in low and you waived that contingency, you may have to cover the difference in cash. Patrick covers when it makes sense and when it does not.
Continue Learning
Read the companion blog post on contract terms every first-time buyer should know with a deeper dive into each clause.
Patrick explains the most important contingencies in a purchase offer and why each one matters.
Get the First-Time Homebuyer Roadmap for a complete step-by-step guide to the entire process.
Have an Offer Coming Together?
Patrick can review your contract terms and make sure you are protected. He has the experience to catch terms that could cost you.
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