Contingencies To Consider Placing On Your Purchase Offer

Posted on: 22 November 2019

After viewing many homes and finding the one you love the best, you might be ready to write a purchase offer to buy it. When you write this and submit it to the seller of the house, the seller will need to evaluate the offer you wrote to determine how to respond to it, and sellers often take their time when doing this so they can fully evaluate the contingencies you placed on the offer.

The definition of a contingency

Before you can decide what contingencies to add, you will need to make sure you understand what they are. A contingency can be described in many ways, but it is basically just a request or condition that the seller must agree to and complete if necessary. When a seller reviews a purchase offer, they should carefully evaluate every contingency on the contract, as these are things the seller will have to agree to.

Basic types you should include

When it comes to contingencies, there are several different types, including basic types. Basic types of contingencies are the type you will find on just about any real estate purchase offer, and one example of this type is a mortgage contingency. This contingency basically states that the buyer can legally void the deal if they cannot get a mortgage loan. Another basic type of contingency is one that says that the buyer can legally void the deal if the house appraisal is not high enough. You should add both of these contingencies and any other basic ones that your real estate agent suggests.

Other types that might be helpful to include

Additionally, you have the choice and right to add other types of contingencies, but these are considered optional. For example, you do not have to put in a home inspection contingency, but it is a good idea to do so. This would give you the right to ensure that a home inspector analyzes the home and that the home comes back in satisfactory condition. You could also add a contingency to ask the seller to fix something or to pay for something that normally you would pay for.

The contingencies you place on the purchase offer you create are there to protect you in this deal, and you should carefully think about these things before writing and submitting your offer. You can ask your real estate agent for more information if you have any questions.