When you enter into the buying process, you will be commited despite all the uncertainties involved. By adding contingencies clauses in the contract, the buyer feels a sense of protection from the unknowns. Contingencies clauses state things that need to be met before closing the sale.
This is one of the most common contingency. It provides additional security for the buyer. This contingency states that the buyer will acquire a certain kind of mortgage at or below a certain interest rate for a particular amount of the purchase price (usually 80 percent) on or before a specific date before closing. If the buyer is unable to get a loan according to the terms stated on the contingency, he can withdraw from the contract and the earnest money will be given back to him.
The security that comes with contingencies protects not only the buyer but the seller as well. If the buyer is unable to secure a loan but fails to inform the seller by the date agreed, the buyer is still obliged to buy the house with or without a loan. Depending on the contingency, the seller can also find a mortgage for the buyer. To provide more protection for the seller, they could do the following: set an earlier date for the deadline so the buyer can't back out at the last minute; negotiate that a significant part of the earnest money will be forfeited if the buyer can't get a loan by the deadline.
Appraisal contingencies work with mortgage contingencies. It can work in two ways: (1) If a buyer cannot get an appraisal that can cover the asking price, the buyer can back out of the sale; (2) If the buyer cannot acquire enough appraisal, the buyer can negotiate for a lower price. If the seller does not agree with it, the buyer can walk out of the sale.
This contingency allows the buyer time to inspect the house. Typically the time frame is 3-14 days. If the inspection reveal major problems with the house, the buyer can opt to back out.
There are many other contingencies available like insurance contingencies or mold inspection contingencies. Common contingencies vary among states.
Never disregard fine prints. Read them carefully and make sure you understand what you're about to sign. The contract is legally binding. You can't just change your mind once you sign it.
Jeff was very knowledgeable on the market what the house would sell for and what people to go after. With his help we came to a conclusion on what we could ask for and he walked me through everything. Any questions he was there to answer and paper work was a breeze. When I wasn't sure what i was signing Jeff talked me through it all and got the job done. Thank you!!! Job WELL Done!
He worked very hard for me and I would highly recommend
Being a first time home seller Jeff Maas was highly recommended to me. He walked me through the sale process and what was expected of me. The house sold in three months and for a lot more than I thought I could get for the house. Jeff would answer my questions or get the answer to my questions. He worked very hard for me and I would highly recommend Jeff Maas to anyone looking to buy or sell property.
Jeff and his staff are professional yet compassionate.
Jeff assisted us in selling a house that was owned by our deceased daughter. He was extremely helpful during a very difficult time. We are located out of state and he helped by arranging required repairs and even doing small repairs himself. Jeff and his staff are professional yet compassionate. I highly recommend them.
Jeff has the skills, experience and integrity to provide excellent service.
Jeff has the skills, experience and integrity to provide excellent service for all your real estate needs. He brought me a buyer at my price and we closed the sale sooner than anticipated.
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