Before submitting an offer, you may want to consider an inspection contingency.
Whether you are buying your first home or your third, buying a home is definitely a learning process. For instance, did you know you can include contingencies in with your offer? There are some key contingencies you should know about before sending your offer over on a house. Let’s take a look at some common homebuyer contingencies.
Financing/Loan Contingency
Almost all sales contracts are contingent on you being able to secure a loan or financing for the house you want to buy. These homebuyer contingencies are often in place from the time you sign your contract until closing. This contingency allows the seller to know that you are able to obtain a loan for their house.
Home Inspection Contingency
Home inspections are one of the most popular homebuyer contingencies. This contingency means that if there is something wrong with the house, you will be able to break the contract and receive your deposit back, be able to lower the purchase price, or have the sellers fix the problems. This inspection contingency allows buyers to send in experts of their choosing to do the inspection including general contractors and pest exterminators. If the house you are purchasing is in a known flood zone, you could also bring in an expert on natural disasters to inspect the home for possible damage or things that could make the home safer.
Title Contingency
Title contingencies are also important to homebuyers to think about when drawing up their offer. This contingency will allow you to leave the contract if the seller can’t prove they have a valid title for the property. While there are people out there who would scam homebuyers into buying a home they don’t have a right to, others may have inherited the home but aren’t allowed to sell it because of a contested will. There are many circumstances involving titles that could result in trouble if there isn’t a title contingency.
Some Rules for Homebuyer Contingencies
Before stacking your offer with contingencies upon contingencies, there are some rules you should know. The first rule is not to stack a bunch of contingencies. It is often thought that the fewer contingencies are in the offer, the more attractive your offer will be to the seller. Another rule is to only execute the contingency if there is no other option. For example, if you are considering buying a home in less than perfect condition, try working with the buyer to find a solution before you cut and run. Or if the title is hold up in court, offer to wait around for a while for them to get the title released. Working with your sellers will help not only allow you to renegotiate the house but may also improve the home. For more information on buying a home with or without homebuyer contingencies, call Clagett Enterprises today!
Common Homebuyer Contingencies with Clagett Enterprises
If you’re looking for the perfect realtor for your family, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistant selling your home and getting the best possible price, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook, Twitter, Pinterest, and Google+.