TRUCKEE REAL ESTATE

Contingencies Your Realtor Should Always Plan For!

Bonnie Jessee, Realtor 530 412 3984

When you are about to write a contract with your Realtor, as you are planning on buying a home, the best plan is always to buy the home on the terms in the original contract. Secondarily the plan is to buy the home after renegotiating some of the terms. The final part of your ‘system’ is the contingency plan. Perhaps there is an insurmountable flaw in the condition of the home or the home doesn’t appraise for the purchase price, or your lender refuses to fund your loan for whatever reason, you can back out of the transaction with no penalty (other than the money you’ve spent on inspections) so long as you have the appropriate contingencies in place. Learn this, contingencies equal the right to cancel the contract and walk away.  This is where having an educated Realtor representing you is imperative!

When you’re in a hot seller’s market, or there are multiple offers on a property, you might feel pressured to make an offer with no contingencies, or one with no appraisal or loan contingency. If your agent suggests this I would definitely rethink your position. It is not a wise Realtor who would be consider having no back-out plan on a purchase in the hundreds of thousands of dollars for you, their buyer client. This is unprofessional behavior to consider a purchase of this magnitude without your contingencies in place, at least until your due diligence into the condition and other considerations of the property is completed.

The results of the home inspections (don’t forget the pest inspection) will assist in your decision making process as to whether you need to cancel a home purchase. Typically properties that appear well maintained will have no deferred maintenance.  Sellers, who tend to the basic maintenance of their homes and keep things well dusted and clean, also often maintain the items that do not appear to the eye of a buyer.

In short, don’t dismiss these sorts of properties that appear to require the ‘handyman’ either. My point is that with any property looks can be deceiving.  

The best suggestion is always write your preliminary contract with the following contingencies:

1. Financing (loan contingency) 2. Inspections (home/pest) 3. Appraisal contingency

Home buying should be a serious, yet joyful experience!  Enjoy!

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