Real Estate Contingencies – What You Need to Know
Filed under: Temecula Real Estate
Have you heard of the concept of “contingencies” being used when negotiating a real estate deal? There are a lot of details to work through in the home buying process. A contingency can be a strategy to negotiate the deal so that you can get into a home – regardless of things that are discovered after the appraisal or inspection happens.
Basically, contingencies are used as a safety net so that you can be protected in case something happens unexpectedly. With the right strategy, contingencies can work in your favor.
Why Contingencies Matter in Real Estate
It is far too common for unpredictable things to come up in a real estate transaction. Even though you’ve walked through a home and you were happy with what you saw, you don’t have a full understanding of the overall condition of the property.
Contingencies are used as “if” statements. Even though you are signing a binding agreement, there are options to get out of the contract if certain conditions aren’t met by a specific date.
For example, one of the most common contingencies is based on the property inspection. If the inspection report comes back with major issues, then the buyer can choose to back out of the purchase penalty-free.
Protecting Your Deposit
In many situations, the purpose of a contingency is to protect the buyer’s deposit. If you are a buyer, then you put money down in good faith in order to reserve your spot to buy the home. These contingencies keep this money safe if something comes up that might change your desire to buy the home.
Contingencies can cover a variety of unexpected factors, such as the determined appraisal value or whether a buyer can get the financing they need. Without contingencies in the contract, it means that a buyer might not have a choice to move forward with the sale – even after problems with the property are discovered.
Help With Your Real Estate Purchase in Temecula
If you are getting ready to buy a home, then it’s essential to have a skilled real estate agent who can help with the negotiations and offer advice about your unique situation. Our team is here to help every step of the way!
Are you ready for more information? Text, email, or call me any time at (951) 473-0390 or [email protected].