HomeLight

JULY 31, 2020

Closing on a house seems pretty straightforward. Once the buyer and seller sign the contract, the closing process begins — and therein lies the rub. While seamless closings are ideal for everyone involved, they almost never happen unless the buyer is paying cash on the home, and even then there can be a roadblock or two.

Closing 119

Closing Purchase and sale agreement Title search Earnest money deposit 119

HomeLight

JANUARY 31, 2024

Essentially, the deal can proceed to closing only if these specified conditions are fulfilled. Contingencies are designed to protect both parties involved, allowing the buyer to back out of the purchase without penalty under specific circumstances, such as issues discovered during a home inspection or difficulties obtaining financing.

Purchase and sale agreement 115

Purchase and sale agreement Inspection contingency Home sale contingency Inspection 115

HomeLight

JANUARY 10, 2024

Most purchase agreements are contingent on two key items: home inspection and financing. As a homebuyer, knowing what these contingencies mean for you and the seller can help you make decisions with more confidence and avoid unexpected surprises and pitfalls. What does this mean to a buyer?

Earnest money deposit 116

Earnest money deposit Purchase and sale agreement Inspection contingency Inspection 116

HomeLight

MARCH 31, 2021

A seller credit is a type of seller concession where the seller offers the buyer money at closing to sweeten the deal. Buyers appreciate seller credits since these essentially discount their closing costs which are typically between 2% and 5% of the home’s purchase price. Seller credits are money the seller gives the buyer at closing.

Closing 105

Closing Seller concession Sales Closing costs 105

HomeLight

MARCH 2, 2023

People who live here love the proximity to some of the west coast’s best beaches, as well as being close to destinations like Disneyland, Joshua Tree National Park, and the deserts of Palm Springs. Closing costs in California average about 1% of the home’s sale price , and there are other pre-paid costs you might have as well.

Closing 118

Closing Earnest money deposit Sales Inspection 118

HomeLight

SEPTEMBER 30, 2020

These properties are typically sold as-is, without the option to negotiate repairs, and as the buyer, you’re unlikely to get the seller and their lender to agree to cover your closing costs. If you’re interested in a short sale opportunity, get a better idea of what you’re in for and what closing costs you can get covered.

Short sale 98

Short sale Closing costs Closing Sales 98

HomeLight

SEPTEMBER 9, 2020

That’s because “a buyer purchasing a home with a mortgage loan could still lose their financing, even with a solid preapproval letter. A contingency means that you’re willing to purchase the home contingent on certain details checking out. Are you responsible for paying closing costs — or will the seller do that?

Inspection contingency 116

Inspection contingency Inspection Title Proof of funds 116

HomeLight

AUGUST 25, 2020

home was on the market for an average of 24 days , with Ellie May estimating an average of 46 days to close on a purchase loan. That’s 70 days — or a little over two months — from listing to closing. Every house, every market, and every individual sale will vary in terms of days on market and closing timelines.

Closing 122

Closing Pre-approval Inspection Days on market 122

The Close

MARCH 11, 2025

This process involves multiple stages, starting with identifying an FSBO listing to securing appropriate financing and completing the closing procedures. Understanding their needs will increase your chances of closing the deal. Such financing allows investors a competitive edge similar to cash buyer timelines.

Sales 52

Sales Due diligence Investor Finance 52

Redfin

MARCH 4, 2025

A mortgage pre-approval can also reassure the letter that your financing is likely to be approved during closing. If you want to inspect for lead, oil, or other specific issues, consider looking into these as part of a general inspection contingency, rather than including separate contingencies for each one.

Pre-approval 31

Pre-approval Inspection contingency Agents Inspection 31

HomeLight

MARCH 6, 2023

The Bay Area is also close to beaches, national parks, and the wineries of Napa Valley. Consider factors such as how long you plan to be in the area, if you have steady employment, and if you have enough money saved for not just the down payment, but for closing costs , maintenance, property taxes, and more. Loans are between 3%-3.5%

Earnest money deposit 110

Earnest money deposit Closing Sales Title 110

HomeLight

FEBRUARY 6, 2024

These conditions are put in place to protect both the buyer and the seller, ensuring that specific criteria are satisfied before the transaction proceeds to closing. Types of contingencies Several common types of contingencies can cause a home to be listed as “contingent.”

Inspection contingency 116

Inspection contingency Home sale contingency Inspection Finance 116

HomeLight

DECEMBER 31, 2020

Not only will you need to be packing, cleaning, and getting the house ready for your buyer, there’s also a lot of waiting and hoping that all of the moving pieces fall into place and your home sale closes on time, if you make it to closing at all. Contingencies that fail to be met or lifted. The buyer’s financing with a lender.

Closing 105

Closing Backup offer Sales Inspection 105

HomeLight

DECEMBER 30, 2023

Contingencies while ‘under contract’ Here are some common types of contingencies in residential home sales: Financing contingency: A financing or mortgage contingency safeguards buyers who need to finalize a home loan. If the buyer fails to secure financing, they can withdraw without losing their deposit.

Home sale contingency 119

Home sale contingency Purchase and sale agreement Inspection contingency Inspection 119

Norada Real Estate

APRIL 15, 2023

The length of time a house can be under contract can vary, but understanding the contingencies and obligations during this period can help both parties prepare for a successful closing. Purpose of Under Contract The purpose of the under-contract period is to allow both parties to fulfill any contingencies and prepare for closing.

Earnest money deposit 98

Earnest money deposit Inspection contingency Title search Inspection 98

HomeLight

NOVEMBER 8, 2024

In real estate, “pending” means a seller has accepted an offer, and the property is under contract , but the sale hasn’t yet closed. This can mean that the buyer’s financing is approved, the inspection contingency is met, or any appraisal concerns are resolved. If everything goes smoothly, the sale could close faster.

Inspection contingency 94

Inspection contingency Backup offer Inspection Home sale contingency 94

Realty Biz

APRIL 20, 2022

Let’s look at the most common contingencies in an offer and what they mean to buyers and sellers. Common Contingencies Found in an Offer to Purchase. Home Inspection Contingency. One of the most common terms in an offer is the home inspection contingency clause. Mortgage Financing Clause.

Purchase and sale agreement 104

Purchase and sale agreement Home sale contingency Earnest money deposit Inspection contingency 104

HomeLight

APRIL 29, 2021

You’ll need to subtract your closing costs to determine how much money you’ll walk away with after the sale. So, what are closing costs in Delaware? In Delaware, sellers typically pay 6% to 10% of the home’s sale price in closing costs. Loan payoff includes the remaining principal and interest owed up until closing.

Closing costs 85

Closing costs Closing Seller concession Homeowner’s association 85

HomeLight

NOVEMBER 29, 2021

You’ve found the house of your dreams, your offer has been accepted, and you’re ready and eager to reach the closing table. But first, you have to sell your old home, potentially secure financing, and secure a home appraisal (and likely an inspection) on your new house. How long is a contingency period?

Purchase and sale agreement 111

Purchase and sale agreement Home sale contingency Inspection contingency Earnest money deposit 111

HomeLight

OCTOBER 30, 2020

As for whether you can sell a house as is without inspection — the answer is yes, it’s possible and does happen. And for sellers of distressed homes or inherited property, it can be an appropriate strategy to facilitate a streamlined closing. However, a buyer could still include an inspection contingency in the contract.

Inspection 111

Inspection As-is Inspection contingency Investor 111

RIS Media

MAY 19, 2021

However, this is just the start with many things to do before the status changes to “Closed.” ” There are other statuses in the MLS listings like “Pending,” “Contingent,” “Coming Soon” and “Expired.” Not all sales will have contingencies with them, but most will.

Purchase and sale agreement 98

Purchase and sale agreement Earnest money deposit Inspection contingency Home sale contingency 98

Realty Biz

OCTOBER 12, 2021

The top regrets listed were all finance-related, including maintenance, mortgage and other costs being too high. Another big danger associated with maintenance costs is that it has become increasingly more common for buyers to waive the home inspection contingency to try and get their offer accepted.

Inspection contingency 106

Inspection contingency Closing costs Inspection Closing 106

HomeLight

JULY 31, 2020

This is important: if your real estate agent puts in an all-cash offer on your behalf, they will not include a financing contingency. The seller makes decisions based on the terms of your offer, including contingencies. So in many cases, making an all-cash offer means you won’t even attempt to obtain financing at all. (No

Purchase and sale agreement 98

Purchase and sale agreement Inspection contingency Proof of funds Finance 98

HomeLight

JULY 6, 2023

When your home first hits the market, your listing agent will note that it’s “Active,” as in ready and available for showings — but there’s a lot of ground to cover before your agent lists the status as “Closed,” when you have a done deal and you’re ready to hand over the keys. In other words, “pending” is the next step after “contingent.”

MLS 105

MLS Backup offer Inspection contingency Purchase and sale agreement 105

HomeLight

JULY 31, 2022

Before properties can be financed, their value and condition is typically examined by a state-licensed, independent appraiser contracted by the buyer’s mortgage company. These are standards related to the overall condition of a property which will play a role in the willingness and/or ability of a lender to finance a buyer’s loan.

Closing 98

Closing FHA loan Purchase and sale agreement Inspection 98

HomeLight

JANUARY 13, 2022

An active contingent listing means that the seller has accepted an offer from a buyer, but certain conditions haven’t been met yet. These conditions are known as contingencies, which is where the term “active contingent” comes from. Many offers contain contingencies. Inspection contingencies.

Backup offer 97

Backup offer Inspection contingency Purchase and sale agreement Home sale contingency 97

Realty Biz

DECEMBER 31, 2020

You must have your financing preapproved and be working with a lender that will close the deal quickly. Sellers will look at the price offer but they will also look to see whether one buyer has an easier path toward closing than the other competitive offers. Expect bidding wars.

Inspection contingency 110

Inspection contingency Inspection Closing Loans 110

Realty Biz

NOVEMBER 10, 2021

When a home is listed as “pending,” the contingencies have been met, and it is moving towards the closing date. A “contingent” listing also means that the seller has accepted an offer, but some things still need to be completed on the way to closing. Home Inspection Discoveries. Financing Isn’t Guaranteed.

Purchase and sale agreement 129

Purchase and sale agreement Inspection Inspection contingency Finance 129

HomeLight

JANUARY 3, 2024

It means the buyer and seller have agreed to the terms of the contract, such as the price, the closing date, the personal property, the earnest money, tax preparation, and contingencies.” The buyer may even be pre-approved by their lender, but there’s still work to be done before the financing officially comes through.

Purchase and sale agreement 115

Purchase and sale agreement Earnest money deposit Inspection contingency Pre-approval 115

Point2Homes

DECEMBER 8, 2020

But, what does contingent mean and how does it affect your purchase? A home listed as contingent means the seller has accepted an offer. However, before the sale can go to closing, certain contingencies must be met. How is Contingent Different from Pending? Contingent Statuses.

Purchase and sale agreement 145

Purchase and sale agreement Backup offer Home sale contingency Short sale 145

Realty Biz

MARCH 16, 2022

All-cash offers were found to be significantly more successful than other strategies that are commonly used in bidding wars, such as waiving the financing contingency or a pre-inspection. Another tactic that helped in bidding wars was pre-inspection, which improved a buyer’s chances by 25%.

Inspection contingency 87

Inspection contingency Inspection Finance As-is 87

HomeLight

SEPTEMBER 22, 2020

You’ve got an incredible opportunity to make the most of this deal, if only you can avoid tripping up before closing. The “best” component refers to all the other terms included in a contract that can be tweaked to sweeten the deal — such as waived contingencies , putting down more cash upfront , or offering a more flexible closing date.

Earnest money deposit 98

Earnest money deposit Inspection contingency Closing Inspection 98

HomeLight

OCTOBER 1, 2020

So as a buyer, you should have a contingency in your contract to protect you in case you can’t get proper financing for the home. Contract contingencies are used in most real estate contracts, and it’s not entirely uncommon for deals to fall through. Financing contingency. Inspection contingency.

Earnest money deposit 98

Earnest money deposit Purchase and sale agreement Sales Home sale contingency 98

Redfin

FEBRUARY 22, 2021

Even as you dream about color schemes, furniture placement, and what the ideal layout of your new home will be like, you’re probably also keeping a close eye on interest rates and what your future mortgage payment will be. What are closing costs? . Here is a sample closing disclosure to familiarize yourself with the form.

Closing costs 78

Closing costs Closing Title Title search 78

Realty Biz

SEPTEMBER 2, 2021

When you take closing costs, repairs, and other concessions to the buyer into account, a seller is actually looking at around 10 percent. In a real estate sale, it’s common for there to be contingencies – or conditions – that need to be met before the buyer will close the deal. Underestimating Costs.

Inspection contingency 98

Inspection contingency Closing costs Inspection Agents 98

HomeLight

SEPTEMBER 10, 2022

Understanding the implications of a kick-out clause can make the difference between buying the home you want and being saddled with two mortgages (or not being able to qualify for financing). Examples of contingencies that may cause the seller to add a kick-out clause: A home sale contingency. An inspection contingency.

Purchase and sale agreement 111

Purchase and sale agreement Home sale contingency Sales Inspection contingency 111

The Close

SEPTEMBER 10, 2020

Sellers want to work with buyers they can trust and experience a painless closing. For most sellers, the fear of a buyer’s financing falling through and not getting to the closing table. Working closely with a lender should be mandatory before showing any homes. Include an As-is Home Inspection Contingency.

Home sale contingency 116

Home sale contingency Pre-approval Earnest money deposit Marketing 116