When you finally take the leap to purchase a home, there may be steps in the process that you aren’t familiar with. Buying a home is a process, and there are several steps that are taken along the way. One part of the process is earnest money that is paid upfront by the buyers as their show of good faith. However, there are contingencies that are put in place from the other side that have to be met otherwise, the earnest money can be kept by the buyers, and they have the choice to walk away. Deb Maher Realtor is here to talk about what the contingencies are when purchasing a home.
Most Common Contingencies in Place to Protect Homebuyers
There are several different contingencies that help protect buyers when purchasing a home. Here are the most common ones:
– Appraisal: As a buyer, you don’t want to overspend on a home. To help ensure buyers aren’t doing that, there is an appraisal that happens. It compares the home against other houses on the market and determines what the house is worth. If the appraisal comes in lower than the asking price, buyers have the choice to negotiate or walk away from the sale all together.
– Financing: Most buyers have to get financing from a lender. For protection, there is a contingency on financing to ensure they aren’t locked into purchasing a home that they can’t get financing for. Some buyers end up not being able to qualify for the amount of money they need to buy a particular home. This allows them to walk away if they aren’t able to get the money they need.
– Home Sale: Some buyers have another property that they have to sell in order to buy a home. This contingency provides them with the time they need to get their current property sold. If they aren’t able to sell the home, they get their money back. Many sellers will turn down this contingency, but it is worth a shot if you are concerned about not being able to sell your current house.
– Inspection: During the inspection, there is a chance that there are issues that arise. If this is the case, there is a contingency in place so that the repair has to be taken care of or the cost of repairing it is written into closing costs so that they buyer isn’t stuck with the burden. It is always an option to walk away as well depending on the severity of the issue that is uncovered during the inspection.
Residential House Property Sales & Rentals in Gatesville, Valley Mills, Robinson, Lacy Lakeview, Bellmead, Hewitt, Woodway, Greater Waco, TX | North & Central Texas Real Estate
If you are ready to buy a home, you can turn to Deb Maher Realtor to help you find the right fit for you and your family. We will help keep you protected throughout the buying process by ensuring there are contingencies in place to do so. Call us today!
