When you are ready to make an offer on a new home in Waltham, a good Realtor will help you with one that lies within your budget but will still be attractive to the seller. Most buyers only consider a proposal in purely financial terms; it’s just ‘offer vs asking price’. But there may be other factors that you should consider as you want to craft a comprehensive offer that protects all your interests beyond just the price. In real estate, these are called contingencies.
Simply put; a contingency is a requirement or condition that must be met if a sale is to successfully close. If a contingency is not satisfied, it may put the sale in jeopardy and send both the buyer and seller back to the negotiating table. Contingencies are a vehicle to protect the buyer to ensure that their interests are fully represented at closing.
There are a variety of contingencies available to Waltham buyers. However, these two are probably the most widely used. The mortgage contingency protects you and your ability to secure financing prior to closing on a loan. With a mortgage contingency in place, if you are unable to secure a loan, the transaction would be voided and your deposit would be refunded to you. A home inspection contingency protects you in the event that your home inspection reveals that structural or mechanical exist in the home you are buying. With an inspection contingency in place, you would have the ability to again void the transaction and have your deposit returned, or attempt to negotiate the repair or a reimbursement towards the defects that were found. The buyer may also ask that this contingency extend to features outside the dwelling such as swimming pools, septic systems, pests etc.
When determining if one or more contingencies may be right for your particular situation, your Waltham Realtor will be your best resource. They can advise you on which contingencies to include and will ensure that the proper details are included in your real estate contract.
Should I bother looking at homes that have a contingency offer? While it may be closer to being sold, there is a chance the contingency may not be met, and the home may return to the market. It is best to let your Realtor know that you are interested, so that they may jump on it if the sale does fall through.
If you have additional questions about how contingencies work – and which contingencies best protect you as a buyer – speak to your Waltham Realtor. They have the experience and expertise to help you put together an offer that protects your interests and will appeal to the seller.
By Hans Brings, Premier Agent, Coldwell Banker Residential Brokerage
