In this very competitive real estate market, many buyers are waiving their appraisal contingency. What if the banks have not caught up with the latest market trends and the property does not appraise for the purchase price? The buyer is still on the hook for coming up with the difference and are not able to walk away if they have waived their appraisal contingency. However, there could be a hidden piece in there that buyers could use to work to their advantage, if they are prepared. Understanding these contingencies is the first step in understanding how to use some of these contingencies to work as a strategy to get your offer accepted. Be sure to see more videos where I cover the financing contingency and the appraisal contingency.
In this competitive Bay Area real estate market, buyers should understand what it means to waive their financing contingency. Buyers can be at risk of losing their good faith deposit if they try to get out of the contract and have waived their finance contingency. This is a contingency that needs to be discussed with your lender and your agent in order to make sure this contingency has been carefully and accurately considered. Be sure to see more videos covering first time buyers and working with an appraisal contingency and the inspection contingency.
In this hot Bay Area real estate market, inspection contingencies are an important consideration in the home buying process. It is important to understand what type of inspections a seller will typically provide for you, whether you need more specific information from a specialist, or if you are comfortable waiving your inspection contingency all together. Whether you are a first-time buyer or it’s been a while, this series will help you understand the three basic contingency options on the California purchase agreement. Be sure to find the other videos discussing financing and appraisals.