5 Most Common Contingencies
Home Inspection Contingency
This allows the buyer the right of a professional inspection to determine the condition of the home. Generally, this must be performed within seven days and removed. The inspection will address any safety, fire, and system condition issues.
A professional appraisal will be ordered to ensure the price offered in the offer is fair market value. If the purchase will be financed, the lender must ensure the home is worth the loan value.
Final Loan Approval Contingency
This contingency protects the buyer in the event they are unable to obtain final loan approval.
Sales of Current Home Contingency
Sometimes a buyer will make an offer on a new home before their current one has sold. This contingency protects the buyer from having to complete the new sale until their home has sold.
This contingency protects the buyer if the seller does not have the “right” to sell the home due to unforeseen ownership issues.
Contingencies are part of most real estate contracts. As you review buyers’ offers, make sure to consider both the kind of contingencies and how long before the buyer must remove them. This way, you will choose the offer with the best terms and price. As your agent I will guide you with your decision based on my industry knowledge.