Much has been said about how important each step of the home buying processes is. When it comes to spending a large amount buying something that should always be the case right? To give you a real sense of just how important each step in the home-buying process is, let’s look at one step which is fulfilling contingencies in real estate contracts.
Simply put, a contingency is a condition set by the buyer or the seller that should be met before the sale is made final. There are several contingencies that come to mind that every first-time home buyers should know and I’ll list them below to give you a better look at this step in home-buying.
1. Inspection of the property. The buyer should have this as a conditional. Before you buy a home, you need to know that it is in good condition and for that, an inspection of the property is needed. Once the inspection is completed and the buyer deems that there is a problem with the property, he or she can renegotiate its final price.
2. Financing for the buyer. This is the sort of contingency that is very normal and obvious is that the buyer should secure financing before both parties agree to a deal.
3. Disclosures from the seller. As the buyer, you should know all known issues about the property that you are going to buy. The seller should provide you with a disclosure of the issues without which, the sale would not go through. It is a contingency that would protect your investment.
4. Timeframe for specific occurrences. Time is money and both seller and buyer need to be able to complete the deal with as little snag as possible. Having a condition that the deal will only go through if both parties complete certain things by a certain date would make things easier and faster for both sides.
Going through the list of contingencies can be a hassle especially if there are a lot of things involved. We are here to help you with the whole buying process so don’t hesitate to contact us.