70 Ways for Home Buyers to Save Money When Buying a Home: Tip #14

Tip #14 in our series of 70 ways to save moneyback out of the deal, you would end up losing your
when buying a house is use a weasel clause toescrow money.
protect yourself.Another way to get the deal canceled is to say that
Even if your lender does not require a pest (termite)you did not qualify for the loan. Every offer to
inspection and the seller says he has never had apurchase should have the clause that if the buyer
problem with insects you should get one done fordoes not qualify for the loan, the deal is dead. But if
yourself anyway.you followed our earlier tip about having a
If the house has a pest problem, and you do notpre-approval letter it will not be possible to use the
discover it, it could cost you thousands in repairs andmortgage clause as a weasel clause. So we use the
months of agony. Spend a little money now to avoidpest inspection as the weasel clause.
spending a lot later.Just make sure to leave yourself a backdoor in case
A pest inspection is easy to do and relatively cheap.you need to get away from the deal. Maybe another
Just make sure you add a contingency in your offerhouse you like better just went up for sale, or you
that the offer is only good if you approve of thedecide you do not like the neighborhood after all.
findings of the pest inspection.Whatever the reason, it is always a good thing to
Notice the wording of the previous paragraph. It sayshave an out, incase you need it.
that you will buy the house only if you approve ofThe pest inspection makes a great weasel clause. But
the findings. It does not say you will buy the house ifeven if you do not use it as such, make sure to get
there are no termites. This is what we in theone done before you buy. Getting rid of termites is a
business call a weasel clause. It lets you get out ofvery annoying and expensive proposition. And not
the contract for a stupid reason.something you want to do for your new house.
Even if the pest inspection comes back negative, youSpend the couple hundreds dollars and get it done.
can still say you do not approve of the findings, andAnd add it to the offer that you want to have it
walk away from the deal. And there is nothing thedone, otherwise the seller does not have to allow
seller can do about it.you to do it.
Without this clause, if for some reason you had to