Most inspectors will gladly discuss problems and what should be done to correct them. Often, what looks very bad, such as a fireplace crack, isn't serious and can be repaired inexpensively. Even buyers of brand-new houses should hire professional inspectors to search for construction errors. Many printed purchase offer forms contain a liquidated damages clause. This clause means that if the buyer defaults and does not complete the purchase, the buyer and seller have already agreed on the amount of damages the seller will receive from the buyer's earnest money deposit.
Some states limit the amount of liquidated or agreed damages.
For example, California limits forfeited residential sale liquidated damages to the lesser of 3 percent of the sales price or the actual amount of the buyer's good faith deposit. Some home buyers want to be able to cancel their purchase if they change their minds. However, many sellers won't accept such clauses, which tie up the house, effectively taking it off the market. To avoid the need for such an escape clause, consult a real estate attorney or other advisor before making the purchase offer. All rights reserved.