Whether you are buying or selling a home, you will most likely have to deal with contingencies during contract negotiation. Contingencies are conditions placed on the contract that, if not met, allow the buyer to either back out of the deal. Of course in the case of an unmet contingency, buyer & seller can always renegotiate, if they would prefer. If you’re thinking of buying or selling a home contingencies may seem a little overwhelming, so here’s some help explaining some of the most common:
- Contingent on appraisal means that the home must be appraised and its appraised value must meet or exceed the offer price on the contract.
- Contingent on inspection means that the house must pass any professional inspections that the buyer desires. In addition to a general home inspection, this might also include specific inspections such as structural engineering, termites/pests, radon, mold, electrical, plumbing, roof, etc. If any inspections turn up any problems that could be potential problems for the buyer or problems that would impact the price of the home the buyer may wish to renegotiate or to back out altogether.
- Contingent on financing means that the buyer must secure a loan for the specified amount of the offer price.
- Contingent on repairs means that the seller must repair any evident issues or issued turned up by the home inspection up to the agreed upon amount.
- Contingent on closing costs means that the seller must pay the specified amount (up to 100%) of the closing costs.
There are many other contingencies that can be written into real estate contracts, but these are just some of the most common.
Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.