After several years of diligently saving money, I’m nearly ready to purchase my first home. Because I’ve been thinking about buying a home for so long, I know exactly what I want my house to look like. I desire a place that has three bedrooms and three bathrooms. I also need a quiet space to set up my home office in. I want a massive, walk-in closet in my master bedroom. My master bathroom needs to have double vanities, a tiled, walk-in shower, and a Jacuzzi tub. On this blog, I hope you will discover how to set priorities during your new home search. Enjoy!
A New Home Search
Home Contingencies: What All Sellers Should Know Before Closing
Elli Jokela
Selling a home is a major step in life, and it is important to understand contingencies. Contingencies are conditions that buyers place on a contract when buying a home. In most cases, contingencies are very reasonable and are conducive to selling your house. The following are some different forms of contingencies that can be placed on a home sales contract:
The Types of Contingencies
There are a variety of contingencies that a buyer may place in a sales contract before they are willing to purchase your house. Many of them are fairly standard inclusions while others may be more specific to your property.
Finance Contingencies
A finance contingency is typical in most sales contracts. It states in the contract that the buyer must be required to have a verifiable way to pay for your home. This is a very important part of a sales contract that should not be overlooked. This contingency is beneficial to both buyers and sellers, but it is very helpful to the seller specifically. This shows that issues getting a mortgage to pay for the property will not hold up the party purchasing your home. This can include showing proof of a bank balance in the amount of the offer or a pre-approval for a loan.
Insurance Contingency
Insurance contingencies are not a requirement in all purchase contracts, but they can be added if a seller would prefer in order to make a quicker sale. Homes that are harder to insure can be more difficult to sell. This includes properties that are in an area afflicted by major weather events or those that could be affected by mold. By placing an insurance contingency on a contract, it demonstrates that the buyer will not have an issue getting approved to purchase the house. The buyer will feel safe by making contract that states the house sale will only move forward if the home is fully insurable.
Escrow Contingency
An escrow contingency is another option that is often added to a sales contract. Escrow is the period of time from the beginning of the sale until the contract closes and the house is sold. If you need a certain amount of time to get out of the house, you can add this into your contract. This will ensure you have enough time to get yourself moved out and into your new home without having to make temporary living arrangements.
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