You can’t predict the future — or control the havoc that a fire, hurricane, or flood can take on your home. But, you can take steps to ensure that you’re prepared in the event you
Risks of Removing Buyer’s Contingencies
Dated: August 5 2021
Typical real estate offers include a wide variety of standard contingencies. These can include home inspections, appraisal, and loan approval. In a fast-moving, seller’s market, one of the ways to make an offer more appealing is to remove contingencies.
Real estate contingencies are intended to protect the buyer from unforeseen issues. Once these contingencies are removed, the buyer typically has no recourse from these issues. The most important contingencies include:
• Due Diligence Contingency – including home mold, well/septic, structural, and geological inspections. In some offers, due diligence is removed but the right to inspect remains.
• Financing and Appraisal Contingencies - including appraisal, title, loan rate and terms, final loan approval
• Sale of Home Contingency - nearly impossible to have this contingency accepted in a strong seller's market.
Any, or all of these items can create problems during, and even after, the closing period. Without the contingencies in place, the buyer is obligated to conclude the sale and any financial costs incurred by the seller for not doing so, including the forfeiture of their deposit.
Most of the United States is experiencing an advancing market. This means prices are rising at a steady pace. As a result, both buyers and sellers expect to settle on a sales price higher than recent, comparable sales. Buyers are desperate to have offers accepted and are willing to compromise on contingencies designed to protect them. Ensure you thoroughly review all contingencies, or the waiver of them, with your agent, prior to making an offer.
Sweet Magnolia Homes brings a local knowledge to the markets we serve that has been obtained from years of living and working in Atlanta and the surrounding suburbs. This means our agents are intima....