Detroit Real Estate

This is an actual scenario that I heard about through a friend.  Their friends were buying a West Bloomfield home and putting 50% down on the mortgage.  They thought they were getting an excellent deal.

The West Bloomfield lake house was listed at 1.3 Million dollars.  They offered $945,000 to the sellers.  The sellers were relocating out of Michigan.  The sellers accepted the $945,000 because they needed to sell.

So the buyer's agent wrote the purchase agreement and here lies the problem.  They forgot to put in this clause and left their buyers unprotected.

"If home does not appraise for purchase price then buyers and sellers may re-negotiate the purchase price.  If  buyers and sellers cannot reach mutual satisfactory agreement then buyer may declare purchase contract null and void.  Buyer and seller will both sign mutual release and buyers entire earnest money deposit will be refunded to them."

This wasn't put in this West Bloomfield purchase agreement.  So when the house only appraised for $875,000.  The buyers were going to have to pay the $945,000 even though it only appraised for $875,000.

The West Bloomfield home buyers were putting 50% so they couldn't use the mortgage clause to get out of the deal.  They still could qualify for the mortgage.  They had agreed to the price.

So if you are buying a West Bloomfield home and are putting over 5% down you should have that clause in your purchase agreement.  I hope this home buying tip will save you from over paying for any house.

Give me a call or email me about your West Bloomfield home at yesmyrealtor@gmail.com or (313)310-9855

Search West Bloomfield home and condo listings

Metro Detroit relocation information

West Bloomfield real estate