Buyer’s remorse is the worst. That’s why contingencies matter.
Purchasing a home may be your largest financial decision you will make. If you’re a homebuyer looking for a new property, you want to feel confident that your investment is solid.
Contingencies are conditions, the protective mechanisms that are placed in the purchase contract that give you, the buyer a way out if certain situations occur. However, in a competitive market, contingencies tend to get “waived”.
There are three common contingencies that every homebuyer needs to work through within the contingency timeframe:
- Home inspection contingency
- Appraisal contingency
- Loan contingency
A home inspection contingency gives you, the buyer time to do your due diligence. The buyer will schedule and pay for the home inspection.
An appraisal contingency dictates that the purchase contract is conditional upon the property being appraised to confirm its value for your mortgage lender.
A loan contingency protects you, the buyer by ensuring you’re able to secure sufficient financing for your home purchase.
Once you, the buyer removes all contingencies, your EMD, earnest money deposit is at risk, so be sure not to remove them all until you are completely satisfied with all aspects of the home.
If you any questions or want to learn more about contingencies, you can reach out to me at 619-851-6028.