Contracts, Contingencies and Negotiations
I have the experience and knowledge to make your offer stand out from the others and get accepted. Many times it is not the only the price that is a factor in getting accepting.
I make sure that my clients are prepared and have all the documents ready so they present offers that all have a high chance of getting accepted. I can also provide a lot of resources to improve things like credit scores and debt to income ratios.
The Purchase Contract
The purchase contract is the written contract buyers use to make an offer on a property. I go over the purchase contract in detail in my buyers guide. In general this contract states how much you are willing to pay for the property, terms for sale and any contingencies on the sale.
Making counter offers can be tough. You don't want to lose an active buyer, but you also do not want to leave money on the table. Money you need to buy your next home.
I have years of experience with counter offers. I will make sure you are not out-negotiated and more importantly make sure you do not over pay for the house.
Contingencies and Buyer Protections
A contingency is a statement or stipulation that is added to your contract that will allow the buyer the right to back out of the deal without penalty under specific circumstances.
Some Common Contingencies Include the Following:
This is one of the most common types of contingency. Basically, it says that your offer is contingent on you being able to procure financing for the property. It will often be specific about the type of financing (FHA, Conventional Loan, etc), the terms (interest rate, down payment, etc), and the time period.
The appraisal contingency is usually implemented by a third party hired by the lender to evaluate the fair-market value of the home. In the instance the appraised value is less than the sale price, the appraisal contingency lets you back out of the deal.
In hot markets, eager buyers might feel pressured to waive it, but they could end up paying more. However, the lender will only put up a certain amount of money for the appraised cost—not the asking price—and the buyer will have to cover the rest.
Home Inspection Contingency
A home inspection contingency could well be the most important one. It gives the buyer the right to have the home professionally inspected. If something is wrong, the buyer can request it be fixed or they can back out of the sale. It’s rarely advisable to waive an inspection contingency.
There are many other contingencies that can be used on a purchase contract, but, the more contingencies, the weaker the offer becomes. I can offer advice about which contingencies are important for each property you make offers on.