Contingencies
A contingency is a condition that must be met before a contract becomes legally binding. For instance, a buyer may include a home inspection contingency stating that their contract is binding only when there is a satisfactory home inspection, or a financing contingency stating that the contract is subject to the buyer’s ability to obtain financing.
Inspections
Most buyers will have the property inspected by a licensed property inspector within the timeframe specified in the contract, usually 14 days after the date of acceptance. Remember, these inspectors are paid to find flaw, no matter how small. Some sellers elect to have home inspections before listing, giving them an opportunity to correct found issues. It can be a selling point when marketing the property to furnish prospective buyers with a copy.
Financing
If you consider an offer with a buyer obtaining financing, we will ask for a prequalification or pre-approval letter from their lender before submitting the offer. Anything without this document is an incomplete offer.
Appraisals
If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to verify that the sales price is appropriate. A cash purchaser may also elect to have an independent appraisal.