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“This offer is contingent upon the following.” This is a common phrase used in real estate purchase agreements and contracts. Home buyers across Washington State often make their offers contingent upon certain conditions or events. In this article, we’ll look at some of the most common contingencies used by Washington home buyers.
“Contingency” is a word with a lot of different meanings. When it comes to real estate, a contingency is basically a necessary condition of the sale. It’s something that must happen in order for the sale to go through. For instance, a purchase agreement in Washington might be contingent upon an acceptable home inspection being completed.
Real estate contingencies are essentially a way for home buyers to protect themselves against unforeseen events. They can give the buyer a way to back out of the deal without sacrificing the earnest money deposit, if the situation warrants it.
Home buyers should realize that the problems and issues mentioned above are the exception, not the norm. In many cases, real estate transactions move along smoothly and end with a successful closing. And when issues do arise, they can usually be worked out. For instance, if a home appraises below the asking price, the seller could adjust the price to reflect the actual market value.
It’s also important to consider the nature of your local real estate market, before including a contract contingency. As a general rule, home buyer contingencies are less common in a hot housing market.
In an active market, sellers can be fairly sure they’ll receive multiple offers. So they might have the luxury of choosing the one with the fewest “strings” attached. Asking for too many concessions, or including too many contingencies, could work against a home buyer in a hot market (like Seattle).
In a highly competitive market, some home buyers choose to waive these and other common contingencies, in order to make their offers more appealing. This is why it’s wise to seek help from an experienced real estate agent who can advise you on such matters.
Do you have questions about getting a home loan? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.