3 Home Buying Contingencies You Could Waive to Speed Up the Process

Several things can be negotiated to speed up the process of buying a home. While some buyers are adamant about waiving every contingency, others may be willing to give up a few to close the deal more quickly.

If you’re in a hurry to buy, here are three contingencies you could consider waiving:

1) The Home Appraisal Contingency

2) The Home Inspection Contingency

3) The Mortgage Contingency

1. The Home Appraisal Contingency

A home appraisal contingency is a condition that must be met for a real estate transaction to go through. The home appraisal contingency protects the buyer by requiring that the property be appraised at or above the purchase price before the deal can close. If the appraisal is below the purchase price, the buyer can either renegotiate the price with the seller or leave the deal entirely. In hot housing markets, where properties often sell above their appraised value, the home appraisal contingency can give buyers some much-needed peace of mind.

2. The Home Inspection Contingency

The home inspection contingency is a common clause in real estate purchase contracts that gives the buyer the right to hire a professional inspector to evaluate the property’s condition before closing on the sale. The inspection contingency protects the buyer by allowing them to cancel the contract or negotiate for repairs if significant problems are discovered. Without an inspection contingency, the buyer would take on all the risk of purchasing a sight-unseen property. For this reason, it is generally advisable for buyers to include an inspection contingency in their offer when buying a home.

3. The Mortgage Contingency

A mortgage contingency is a clause typically included in a sales contract that gives the buyer the option to back out of the deal if they cannot secure financing. This protects the buyer if they cannot obtain a mortgage from a lender. Mortgage contingencies are often included in contracts for purchasing expensive items like homes and cars. Including a mortgage contingency allows the buyer to back out of the deal if they cannot obtain financing without losing their deposit or being otherwise penalized. This type of clause benefits buyers and sellers, protecting both parties if the deal falls through.

Conclusion:

When buying a home, it is important to understand the different types of home-buying contingencies and what they mean for you. Understanding these contingencies will help ensure your purchase goes as smoothly as possible. Work with a qualified real estate agent like Amar Realtor, who can guide you through the process and answer any questions about home-buying contingencies.