5 Common Home Offer Contingencies

by Scott Markham 05/12/2019

Contingency in real estate means an agreement of sale that must take place to continue the transaction. There are numbers of options that buyers can include in their contracts. Below are five common home offer contingencies to consider:

Inspection contingencies

Inspections are of great benefit in the process of buying a home. They enable the buyer to know the exact condition of the property. Most home buyers know inspections cover the general examination of all the systems of the home as well as checking the interior and the exterior. Apart from that, there are other inspections like checking for damages from wood-destroying insects. The inspection contingency comes into play once all the necessary checking is complete.

Financing contingencies 

Financing contingency is essential if you are buying your apartment through a mortgage. Financing contingency gives you the opportunity and time to apply for home purchase financing. The financing contingency states that if you are unable to secure a loan for the purchase of your home, you are eligible to look for other alternative means or you back out from the sale. 

Appraisal contingency 

Appraisal contingency and financial contingency work hand in hand. One of the requirements for granting a loan by most mortgage companies is a satisfactory appraisal. Do not forget that the evaluation is what shows the fair market value of a property. Therefore, an appraisal contingency is significant because it protects you in a situation where the sales price is not at par with the fair market value.

Home sale contingencies 

The home sale contingency is the favorite among property buyers. This contingency gives you a specified period to locate a buyer for your home. If this is not achievable within the stipulated time, you have the privilege of abandoning the sales without anything happening to your money. However, this contingency is not popular among sellers, so not often practiced.

Title contingencies 

Title contingency is also significant in real estate investment. A title to the home is a record that gives information about the ownership of a property. It is a legal document that indicates the people that have owned a property in the past and present. Apart from that, it also gives a record of any judgment made in the past regarding the property.

Be sure to read up and educate yourself on various contingencies that could apply to your sale agreement, so you always have protection. Let your real estate professional advise you about appropriate contingencies to accept and ones to avoid.

About the Author
Author

Scott Markham

Hello!

Thank you for visiting my site. As a retired firefighter, I’m no stranger to helping people in times of need, which is why I chose to pursue a second career in the real estate business when I retired. Granted, a real estate transaction is not a life or death situation, but it is an extremely important one, and definitely a life changing event! I would appreciate the opportunity to help you with your real estate needs, whether you’re buying or selling, I will passionately advocate for your best interest, dedicate the time to meet all your real estate needs, and ensure your experience is as smooth as you always hoped it would be. My approach is customized to each of my clients and their wishes, whether you like texting, email or phone calls, keeping the process convenient for you during your buying or selling process, is my top priority. Please don’t hesitate to give me a call, I look forward to working with you!

PROFESSIONAL DESIGNATIONS & ASSOCIATIONS

-Certified Real Estate Negotiation Expert (RENE) I'm not only certified in real estate negotiation techniques, but I have the determination required to represent every client with passion. 

-Certified Mountain Area Specialist (CMAS): Expertly versed in marketing and selling mountain properties, as well as representing a buyers best interest in purchasing mountain properties. I will assist you in addressing important apects such as wells, septic tanks, leach fields, and fire mitigation concerns.

-Accredited Commercial Professional (ACP): Demonstrated professional competence in the major areas of listing and selling commercial real estate. Trained to work knowledgeably and professionally with commercial real estate brokers, agents, managers, sellers, buyers and leasing clients.

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-Member of the National Association of REALTORS®, Colorado Association of REALTORS®, and Mountain Metro Association of REALTORS®.