Contracts are an integral part of residential real estate. In addition to following all the steps for closing a deal, homebuyers should take time to read contracts thoroughly – but they don’t always do that. More often than not, they sign where they’re told.
This guide discusses why some buyers pay little attention to contracts. Some possible reasons include:
1. Excitement
Of course, it can be exciting to close on a home, especially for first-time buyers or when a buyer was against many offers. This excitement can make one skim a contract instead of reading it thoroughly. All they may want to do is sign the contract to enjoy their new home sooner.
2. Technical terms
Using technical terms in a contract may also make someone not read it, as they may deem it too difficult to understand.
3. Length
When a buyer is presented with a multiple-page contract, they may feel overwhelmed. Some people avoid reading long contracts because they believe they are time-consuming.
Why should you read contracts thoroughly?
A residential real estate contract may have terms that can work against you in the future. Thus, you should read every clause thoroughly with the help of your real estate agent and attorney to identify and bring up issues that should be solved before signing.
Further, a few tips can help you read your contracts without difficulties. It will help to:
- Read one clause at a time
- Understand what each close should include
- Review any addendum
- Ask questions about anything unclear
When you’re buying (or selling) a home, contracts are critical. It is always best to get legal guidance to identify issues and protect your future interests.
