Anticipate potential problems, include these contingencies in your offer and, whether you're a first-timer or a seasoned homebuyer, you'll save yourself some headaches.
A contingency is a clause, a contractual requirement that must be fulfilled before the home sale transaction can close.
Contingencies to purchase offers also give you an out, the opportunity to cancel the contract without financial penalty should certain undesired scenarios play out.
You won't lose your earnest money, if you cancel because the seller didn't meet a contingency.
Many sellers in today's market won't even look at an offer that doesn't come with some proof of financing.
While this contingency may appear to be moot you, you should still include the clause just in case your mortgage approval falls through.
Contingency balancing act
Remember, in a hot real estate market , a seller could receive multiple offers simultaneously. The seller will evaluate all offers and choose the most attractive deal.
If an offer contains too many demands or contingencies, that buyer will likely lose out.
Beyond contingencies, buyers should include an expected closing date.
The date can be somewhat flexible, but with a date in mind, you and the seller can plan your moves, avoid storing belongings between homes, and make all the preparations necessary for a change of possession.
Your real estate agent can help you draft the contract with standard forms approved by their state and real estate association.
By crafting a solid offer, you will increase the likelihood that you will soon live in your dream home.
|Lillian Montalto, broker/owner of Lillian Montalto Signature Properties in Andover, MA, has more than 30 years of experience. Since 2000, Realtor Magazine has consistently ranked Montalto in the Top 5 of 1,000,000 Realtors for sales volume. She's the only Realtor in Massachusetts to consistently achieve this position.|