Home buying contingencies are an important aspect of any real estate deal, no matter if you are buying or selling. These are the conditions that must be met – by both sides – for any deal to be completed.
Depending on what you need, these contingencies may change. Knowing more about them, and working with the right team, can help expedite your next purchase or sale. That’s why it helps to have someone on your side who can help you navigate and negotiate in your best interest.
Here’s everything you need to know about home buying contingencies…
The Most Common Home Buying Contingencies
There are certain contingencies that you should definitely know them. They are:
- Financing
- Inspections
- Appraisals
Financing: Explained
Most buyers will be unable to purchase a home without a mortgage. If you don’t qualify, you won’t be able to purchase. While getting pre-approved is an essential step, it is also baked right into your contract as a home buying contingency. If the bank won’t lend you the requisite amount to make the purchase, you won’t be able to complete it.
Inspections: Explained
This is one of the most common and important home buying contingencies. Before you buy, you will want the expertise of a trusted home inspector to see everything that is right – and wrong – with your potential purchase.
How can a home inspection help? First and foremost, it can unearth any large unexpected issues, and can address how they might affect the future purchase price. It often takes a trained eye to be able to pick up on these things, which makes a home inspector an essential step in the process.
Appraisals: Explained
This is one of the most important home buying contingencies. If a bank appraises the home at less than the agreed-upon purchasing price, as a buyer you have the option to forgo the purchase of the home. This can either result in you, the buyer, putting more money down, or the seller lowering the price – it all depends on how you negotiate the terms of your deal, and the professionals you have at your side.
Access Our Expertise Today
While these are some of the more common contingencies, a buyer or a seller can include other contingencies that they see fit. If you want your future purchase to suit your exact needs, it helps to work with an expert in the field. Are you interested in learning more about home buying contingencies and getting the ones that work best for you?
For over 30 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs, by emailing us at niels@christensengroup.ca or calling us at 416-441-2888 ext. 772.
