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August 26, 2009
What to Have in the Contract?
Hi all,
After passing all the steps of buying a house with much help from this wonderful forum I am close to signing and I was wondering if there is something I should put in the contract that seems important to any of you.
Thank you, I appreciate it.
Comments
contingencies, mortgage and other. Surely your atty will be up on these things.
Posted by: denton at August 26, 2009 8:25 AM
Since we wanted our house to be deliver vacant and in a timely matter. We added a clause that if the seller does not close in 120 days.. the contract will be canceled and seller will be responsible for the buyer's fee during the closing process (down payment will be refund).
Posted by: namahs at August 26, 2009 8:33 AM
contingencies for mortgage, inspection, lawyer's approval. Closing date.
Consult a lwyer before you write the contract if you've never done this before. If you need a recommendation:
David Fainkich
718-840-5860
Posted by: daveinbedstuy at August 26, 2009 8:34 AM
The old owner wanted to stay in for 3 months past closing without a firm move-out date (they were renovating their new place) so we included a clause that said they needed to pay our living expenses at our old place, my commute costs (since it meant we needed to stay in DC and I was already working in NY), our mortgage and maintainence plus $100 a day to stay in our place after closing. They decided it wasn't worth it and moved out right at the closing.
We also included a clause about hauling out all of their junk including paint and other not easy to dispose of items.
Posted by: megunski at August 26, 2009 9:33 AM
We had no problems when we bought our house in PS, but a few years ago, we bought a little place in Montauk. We had asked about a couple of pieces of furniture that they had that we liked (we knew it was all going to the dump). The owner agreed to leave them, but also took that as an excuse to not take ANYTHING from the house, including food and toiletries.
Make sure you specify that the house is empty and "broom clean" and do that last house visit before closing!
Posted by: Rookie at August 26, 2009 11:45 AM
Why are you buying in this environment (if for not at least half off)? Are you okay with the risk of significant depreciation that won't improve in real dollars during your lifetime? If you're wealthy enough to absorb such a risk, then congratulations on your selection and good luck. Otherwise, caveat emptor!
***Bid half off peak comps***
Posted by: Brownstones Half Off at August 26, 2009 1:00 PM
OK, BHO, at this point you're starting to do shtick. Is this some sort of long-term performance piece?
Posted by: Rookie at August 26, 2009 1:54 PM
No, Rookie, I'm not doing shtick. I'm seriously fascinated by people who buy in a rapidly declining market. What do you mean by long-term performance piece?
***Bid half of peak comps***
Posted by: Brownstones Half Off at August 26, 2009 2:04 PM
long-term performance piece = the slow repetition of the same point again and again and again draining what meaning there may have been out of the words leaving us only to wonder god dear god when will this be over are the people sitting next to us enjoying this they can't be enjoying it can they yes yes I've heard you say it before you ask a question but there is no wish for an answer.
Of course that could be applied to pretty much this entire site now.
Posted by: Putnamdenizen at August 26, 2009 2:19 PM
You think it's helpful to buyers for you to lurk on every forum and question whether they should buy? Do you honestly think that someone who has made the huge decision to buy a home is going to read your comment and say "Well, after months of thinking about this, talking to my family, looking around, talking to banks, etc, I was all ready to buy a home. Then some random dude on the internet really made me pause." I doubt it. I also doubt that anyone buying right now is going into it without knowing what the market looks like.
I made the comment because you seem like an intelligent person, but your comments seem so silly, so you must be, at some point, joking.
Posted by: Rookie at August 26, 2009 2:19 PM
We bought our house from an elderly women who was in a nursing home. The house was full of antiques and we knew that her family did not want to take everything. To encourage them to leave as much as possible we deliberately left out the usual "broom swept" clause in the contract. The many good pieces left behind were well worth our extra effort in cleaning out the junk we allowed to be left behind.
Posted by: Bob Marvin at August 26, 2009 4:40 PM
Thanks, Putnamdenizen @ 2:19. I learn something new everyday.
"You think it's helpful to buyers for you to lurk on every forum and question whether they should buy?"
Yes, Rookie. But for sellers, not so much. I might be random but I'm not alone in my argument. Let the buyer decide, not you.
"I also doubt that anyone buying right now is going into it without knowing what the market looks like."
Like that Italian condo owner in Bed Stuy who's story made the Times? Yeah, she was international but we have plenty of domestic shoppers who just "sheep" to the media "herdsmen".
I seem intelligent? Thanks. But why are my comments silly? Buying into a declining market is very serious. It's not too late for Williams to walk away if he's not getting a "good" deal or if he's not THAT happy with the house. Okay okay. I guess I'm wearing my homeprice activist hat and trying to catalyze the collapse. But if I can save a few people along the way, why not? Sick, right? But sick with purpose and service to the community.
***Bid half off peak comps***
Posted by: Brownstones Half Off at August 26, 2009 4:50 PM
During the last big downturn in the market - late 1980's through early 1990's, I know several people who bought at different times with the market on the way down. NONE regretted it. They all had more choices than in an increasing market and didn't risk losing a place they wanted because of multiple offers. The market picked back up and surpassed what it had been when they bought. The only regrets were among those who didn't buy and were waiting for the bottom of the market. The only way to know that the market had bottomed out was after it started increasing and activity picked up. Then they had a hard time finding a place they wanted and if they did, there was competition from other buyers.
The only reason not to buy in a falling market is if you don't think you'll be staying long enough for the market to pick back up. (Not that anyone knows when that will be!)
There's a lot to be said for buying a home you love, regardless of the state of the market.
Posted by: the_why at August 26, 2009 5:53 PM
OK - I feel bad that a legitimate post asking for advice has been (yet again) hijacked, but I will say my peace and speak no more forever. I don't mind (that much) your posting a variation of "all buyers right now are suckers" on HOTD or "Last Week's Biggest Sales," but this is a forum post from a guy (girl?) who is already buying a house. Given the wording of the post, I would imagine he/she has seen many, many of your posts and somehow has still come to the decision to buy a house. So what, then, is the point of you chiming in again here?
Posted by: Rookie at August 26, 2009 8:02 PM
Rookie---thanks for your comments. Most people here have learned to navigate around this posters droning panic mongering but I appreciate a fresh voice of dissent
"There's a lot to be said for buying a home you love, regardless of the state of the market."--nicely said "why" and altogether too thoughtful for this discussion.
In re the topic at hand--definitely get hard dates for move-out, and contingencies of all sorts. I had to get my seller to write in a promise to get a recalcitrant tenant out.
Posted by: wasder at August 26, 2009 9:03 PM
thank you for the remarks!!
BHO- this will be my only note for you because by responding to you I fuel your behavior-
for the sake of humanity, get lai*..... ASAP
Posted by: Williams at August 26, 2009 10:12 PM
I am an interior designer, who works with a registered architect. If you need any help in your new house, please view my web site. www.melaniemintsdesign.com.
I get great savings on furniture and materials. I have also designed several kitchen and bathroom working within a client's budget.
Posted by: MMintz at August 27, 2009 10:15 AM
the why,
You're comparing a microbubble (NY Case-Shiller only dropped -15% though larger drops have been reported) to a massive, unprecedented, once-in-a-lifetime, economy driving bubble (NY Case-Shiller ALREADY down -20% and showing no long term signs of recovery). The latter saved them from a little bit of pain and put a lot of paper equity on their books. But they WILL regret it (or ARE regretting it - when was the last time you spoke them?) if they don't (or didn't) cash out and realize the returns.
Your statement about those who waited for the bottom and regret not buying does not make sense to me. I know people who bought in the mid 90's and had a hard time making up their mind which property they wanted. The bottom lasted five years. That is a tremendous amount of time to find a house. I personally remember back in the late 90's, while searching for an apartment, realtors all over me trying to get me to buy but I wasn't sure if I wanted to remain in NYC and had an unfavorable debt/income ratio at the time anyway (pulse wasn't enough - we're now back to those lending standars!). RE changes very slowly. You are not going to go from fear (little or no competition) to greed (fierce competition) in the course of a few months or even years. And even so, how are you not going to regret buying near the peak of the largest housing/refi/credit bubble in modern history (or effectively doing so by having refi'd back up to 100% LTV or more) only to sell at an almost certain loss (real 2009 dollars or from whatever year you bought in)?
"The only reason not to buy in a falling market is if you don't think you'll be staying long enough for the market to pick back up. (Not that anyone knows when that will be!)"
True but long enough means that you will survive another 100 years or so from now and we all know that is literally impossible and, at that age, wouldn't matter anyway. Again, this is a once-in-a-lifetime boom/bust. You will not see 2006-2009 prices again, in your lifetime, in 2009 dollars. Inflation will make things return nominally but by then a loaf of bread will be $50. Sure, these are predictions and not facts but the likelihood is very strong. You have to understand the time value of money.
"There's a lot to be said for buying a home you love, regardless of the state of the market."
Listings and shadow inventory are full of owners who once said the same thing.
***Bid half off peak comps***
Posted by: Brownstones Half Off at August 27, 2009 12:30 PM
"So what, then, is the point of you chiming in again here?"
As stated above, Rookie, my fascination with why people buy in this environment and a warning if they are misinformed.
Thanks, Williams. I will get laid as soon as the rag is off. It appears that you are confident about your proposed purchase so good luck.
Oh, look at MMintz at 10:15! An "ambulance chasing" architect (no pun, just making a point). Reno prices MUST be dropping!
***Bid half off peak comps***
Posted by: Brownstones Half Off at August 27, 2009 12:38 PM
Well, I've put some offers in on houses this week, but they are houses in Ditmas Park at a substantial discount from peak comps.
Not quite 1/2, but still pretty good.
Posted by: slick at August 27, 2009 1:47 PM
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