How much cash matters in a bidding war
Housing Wire
MARCH 22, 2021
And waiving the financing contingency is the second-most effective bidding-war strategy, Redfin officials said – improving homebuyers’ odds of winning by 66%.
Agent commissions are being negotiated more often, but it’s a ‘tale of two markets’
Housing Wire
SEPTEMBER 9, 2024
Like with the amount of earnest money deposit or including an inspection contingency, the amount the buyer is asking the seller to pay her agent is a term that impacts the strength of the offer,” Redfin chief economist Daryl Fairweather said in a statement.
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5 Tips for Homebuyers Who Want to Make a Competitive Offer
Keeping Current Matters
NOVEMBER 30, 2020
Understand Your Finances. There are, however, certain contingencies you don’t want to forego. Freddie Mac explains: “ Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Bottom Line.
How to Make a Winning Offer on a Home
Keeping Current Matters
MARCH 15, 2021
Understand Your Finances. Freddie Mac explains that there are, however, certain contingencies you don’t want to forego: “ Resist the temptation to waive the inspection contingency , especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Bottom Line.
A homebuyer’s personal story from the post-Sitzer, post-settlement world
Housing Wire
NOVEMBER 4, 2024
In writing both offers, Angela and I made sure to fully disclose how I was expecting her to get paid , as well as all of my requests, including a home inspection contingency clause. I grew up in an 1850s farmhouse and was not going to skip an inspection or an appraisal contingency.
How Long Can a House Be Contingent?
HomeLight
JANUARY 31, 2024
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. The most extended periods typically relate to mortgage and home sale contingencies.
What Does Contingent Mean in Real Estate?
HomeLight
JUNE 9, 2023
Most real estate contracts — or roughly 80% — contain contingencies , according to data from the National Association of Realtors (NAR). As of 2023, 79% of contracts included an inspection contingency while 82% contained an appraisal contingency. What are the most common contingencies?
Most Home Purchase Agreements Are Contingent on These Two Items
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. Most purchase agreements are contingent on which two items?
Closing on a House Checklist: 6 Things Home Buyers Must Do Before They Move In
Realtor.com
OCTOBER 29, 2020
These are the most common contingencies that are part of your new home closing process: Home inspection contingency: This gives buyers the right to have the home professionally inspected. It’s rarely advisable to waive an inspection contingency. Review your closing disclosure.
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Can You Make an Offer on a Contingent House? Here’s What to Expect
HomeLight
FEBRUARY 6, 2024
Types of contingencies Several common types of contingencies can cause a home to be listed as “contingent.” ” These include: Inspection contingencies: This allows the buyer to have the home inspected within a certain timeframe.
Think The Cash Closing Process Is Always Fast? 11 Delays Buyers Should Watch Out For
HomeLight
OCTOBER 30, 2020
A cash deal can close in as little as 7 days, while financed home purchases tend to take an average of 45 days to close. And if you add a home sale contingency into the mix (that is, if you need to sell your current home before you can buy a new one), closing the deal can take even longer. Financing issues.
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The Most Common Home Buying Real Estate Contingencies
Realty Biz
FEBRUARY 20, 2021
Home inspection: often called a due diligence contingency, will give the buyer rights to have the house inspected. Most buyers will have a home inspection contingency in their contract. Obtaining financing: allows the purchaser to get the funds to buy the property from a lender of their choice.
What Is an Appraisal Contingency? Understanding This Real Estate Contract Provision
HomeLight
SEPTEMBER 6, 2024
Generally, an appraisal contingency protects a buyer when a home they’ve made an offer on appraises for less than the amount the buyer offered to pay. Appraisal contingencies are just one type of contingency. Other types include a sales contingency , financing contingency, and inspection contingency.
Under Contract vs. Pending: A Home Buyer’s Guide to Status Tags
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.
Buying Your House With Cold, Hard Cash? Here’s Your Step-by-Step Guide
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. Still, “we love working with a cash buyer,” Ludecker says.
What Does Pending Mean in Real Estate?
HomeLight
NOVEMBER 8, 2024
This can mean that the buyer’s financing is approved, the inspection contingency is met, or any appraisal concerns are resolved. Factors like buyer financing, required repairs, or the need to finalize paperwork can impact this timeline. What contingencies can impact a pending sale?
What Buyers Need to Know About Contingency Periods (And How Contingency Periods Benefit Them)
HomeLight
NOVEMBER 29, 2021
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. According to Ruiz, the average timeframe for an appraisal contingency in his area is 17 to 20 days. Financing contingency. Inspection contingency.
Can You Sell a House As Is Without Inspection? A Reality Check
HomeLight
OCTOBER 30, 2020
The “as is” label signals that as the seller, you aren’t willing to negotiate on price no matter what comes up in the inspection. However, a buyer could still include an inspection contingency in the contract. Additionally, waiving the inspection contingency makes for a more compelling offer to most sellers.
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How Long Can a House Be Under Contract?
Norada Real Estate
APRIL 15, 2023
However, the duration can be influenced by several factors, such as contingencies, negotiations, and local regulations. Additionally, the type of financing being used, such as FHA or VA loans, can also impact the length of the under-contract period. Factors that Affect the Length of Under Contract A.
What Are Common Terms and Conditions in a House Offer
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.
Contingent vs. Pending: Real Estate Lingo Explained
RIS Media
MAY 19, 2021
Not all sales will have contingencies with them, but most will. Common real estate contingencies include the following: Inspection Contingencies. The most common contingency is the home inspection contingency. The home inspection can lead to some delays in the process, too, for around 10% of cases.
What Does Removing the Loan Contingency Mean for Homebuyers?
HomeLight
JANUARY 12, 2024
They are essentially clauses in your purchase agreement that are designed to protect you from unforeseen issues, like problems unearthed during a home inspection or difficulties securing financing. What is a loan contingency? How does a contingency removal work?
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What Does ‘Under Contract’ Mean on a Home Listing?
HomeLight
JANUARY 3, 2024
After you open escrow and the buyer submits a good faith earnest money deposit, some or all of the following contingencies may need to be addressed: The financing contingency will appear in contracts where a buyer needs to finalize a mortgage loan to purchase the home.
What Buyers Need to Know About Making an Offer on Active Contingent Listings
HomeLight
JANUARY 13, 2022
Inspection contingencies. Inspection contingencies mean that a buyer can get a home inspected before the deal goes through, and can back out of the purchase with earnest money intact, depending on what the inspector finds. Inspection contingencies can be waived. Appraisal contingencies.
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In bidding wars, cash really is the king
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%.
The Pros and Cons of Making an All-Cash Offer on A House
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
What is a Contingent House Listing?
Point2Homes
DECEMBER 8, 2020
Common Contingencies Found in Real Estate Contracts. These are the most likely contingencies found in a purchase and sale agreement: Home inspection contingency: The home inspection allows the buyer to do a thorough check of the property’s condition.
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Ask Brian: Will 2021 be a Good Time to Buy a House?
Realty Biz
DECEMBER 31, 2020
You must have your financing preapproved and be working with a lender that will close the deal quickly. Not common, but what some buyers are beginning to do is waive appraisal and inspection contingencies to make their offers more attractive to home sellers. Expect bidding wars.
Selling a House With No Contingencies
HomeLight
AUGUST 5, 2024
In a perfect world, selling a house with no contingencies would be the norm. Buyers would come in with rock-solid financing and make an offer knowing that the price of the home reflects its condition and fair market value , and sellers’ homes would be in excellent condition.
Here’s what first-time buyers need to budget for
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.
Is it Possible to Buy a Contingent House?
Realty Biz
NOVEMBER 10, 2021
There are many common contingencies in a buyer’s real estate contract, leading to a failed home sale. Home Inspection Discoveries. A home inspection contingency is a standard clause to protect the buyer should the home inspection discover problems. Financing Isn’t Guaranteed.
3 Top Reasons Why Sellers Sue Buyers for Backing Out of Home Sales
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.
Real Estate Pending Vs. Contingent: MLS Lingo Explained for Sellers
HomeLight
JULY 6, 2023
So what are the contract stipulations that put a listing into that “Contingent” stage, and how common is it for a property to hang in closing limbo? Here are 5 common contingencies in real estate contracts: Inspection contingency A buyer and their lender understandably want a home inspection to make sure they’re not investing in a lemon.
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The Top 9 Contingencies to Consider in Your Offer When Buying a Home
Redfin
JANUARY 25, 2021
Though you can technically add any contingency you want to an offer, here are the 9 most common homebuying contingencies to consider. 1) Home inspection contingency. As the buyer you should always order a home inspection. 2) Appraisal contingency. 3) Financing contingency.
Avoid These 4 Mistakes When Selling Your Home
Realty Biz
SEPTEMBER 2, 2021
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. These contingencies are put in place to protect the buyer’s interests.
What is a 72-Hour Kick Out Clause And How Does It Work In a Home Sale?
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). Such contingencies often give the buyers limited time, such as 30, 60, or 90 days to sell their old home. An inspection contingency.
Received Multiple Offers on Your Home? ‘Highest and Best’ Will Tell You Who Wants it Most
HomeLight
SEPTEMBER 22, 2020
To combat the confusion, Lunger entered each offer into a spreadsheet so he could clearly outline the terms and finances behind each buyer’s interpretation of “best and highest.”. 260,000 offer with financing and inspection contingency, 60-day close. 248,000 offer with all contingencies waived, 30-day close.
What Is a Non-Contingent Offer When Buying a Home?
HomeLight
DECEMBER 29, 2023
Straightforwardness: Unlike contingent offers, which are dependent on certain events like the sale of the buyer’s current home ( home sale contingency ) or satisfactory home inspections ( home inspection contingency ), non-contingent offers allow you to bypass these stipulations.
7 Creative Strategies to Make Your Offers Stand Out in a Seller’s Market
The Close
SEPTEMBER 10, 2020
For most sellers, the fear of a buyer’s financing falling through and not getting to the closing table. Tell them in no uncertain terms the seller NEEDS the assurance of strong financing, and a proper approval letter is the best way to give it to them. Include an As-is Home Inspection Contingency.
Buying a home is so stressful that half of all buyers are left in tears, a survey finds
Realty Biz
JUNE 15, 2022
Additionally, some buyers planning to finance their purchase with a home loan are losing out to others who are able to pay entirely in cash, which is seen as a more attractive offer to a seller, since they don’t need to worry about the sale falling through in the financing stage.
Here’s How You Can Make an Offer On a House Without a Realtor® in 9 Steps
HomeLight
JUNE 30, 2021
There are a number of factors to consider, and you’ll need to assess your finances and take your priorities into account. Contingencies are certain conditions that must be met before the closing date and typically relate to financing, inspections, appraisals, and home sale. Financing contingency.
Is a Home Sale Contingency Clause Always Necessary? Here Are Your Options
HomeLight
MARCH 31, 2022
There are several contingency clauses typically found in a real estate contract: Appraisal contingency: This contingency allows you to walk away from the deal without penalty if you’re using a mortgage and the appraisal comes in lower than the asking price. You generally see those in a normal market.”
Checklist of What's Covered at a Home Inspection
Realty Biz
OCTOBER 19, 2022
Sometimes the lender requires a home inspection to be completed, which shouldn't be confused with a home appraisal which is almost always required. Even if the lender doesn't require the home inspection, it is recommended. You'll find expert advice on general real estate, financing, mortgages, home improvement, moving, and more.
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I Have to Make an Offer Contingent Upon Selling My House. How Do I Sweeten the Deal?
HomeLight
JUNE 30, 2021
There are lots of other kinds of contingencies — inspection contingencies, appraisal contingencies — but the sales contingency can be especially tricky. Without a sales contingency , you’d have to buy your new home even if you hadn’t yet sold your current house. Most people can’t afford a double mortgage.
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